Question

True/False Questions 14. If both generate the same tax revenue, a unit tax induces greater quantity distortion than an ad valorem tax 15. Market power always reduces overall welfare. 16. Mark up is the amount charged above marginal cost. 17. When a firm uses quantity discrimination (block pricing), it is the high quantity purchasers who pay a higher price per unit. 18. A Nash Equilibrium occurs when players do not have reason to deviate given the action of their opponent. 19. To maximize welfare in a competitive market that has a negative externality in production, government should tax a pollution-generating good at a unit tax equal to the marginal cost of the externality. 20. If there is deadweight loss, we say a market failure has occurred. 21. If two identical firms behave according to the Stackelberg model, the joint production is higher than if the same firms act as a Cournot. 22. The outcome of the Stackelberg model is a Nash equilibrium

Answer 1

14) :- it is false

Ad valorem taxes are defined as a Real property which assessed on real property on a regular basis (usually annually).

It is use by the government as a primary source of revenue to fund normal operations.

15) :- it is true

Market power is defined as a firm can influence the market price

16) :- it is true

markup is defined as the amount added to the cost of goods to achieve the retail price;

17) :- it is false

18) :-it is true

According to HOMEWORKLIB RULES and regulations we have right to do first four true false i hope you understand