Q1136
Consider the following statements 1. One way for the government to induce a monopolist to expand his output is by imposing a price ceiling that makes the monopolist lower his price. 2. MC = MR = AC = AR shows the equilibrium position of the competitive firm. 3. One way for the government to induce a monopolist is to make the monopolist raise his price. 4. One way for the government to induce a monopolist is to expand his output by imposing a specific tax on the monopolist output.
A.
1 and 2
AnswerB.
3 and 4
C.
Only 2
D.
1, 2 and 3
Answer: Option A
Solution
Answer: Option A
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