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Which of the Following Policies Might Eliminate the Distortion Associated

Question 51

Multiple Choice

Which of the following policies might eliminate the distortion associated with monopoly? The imposition of a:


A) subsidy on the monopoly produced good.
B) subsidy on competitively produced goods.
C) sales tax on one of the competitively produced goods.
D) sales tax on the monopoly produced good.

Correct Answer:

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