If the Marginal Revenue Curve Is Twice as Steep as the Demand

Multiple Choice

If the marginal revenue curve is twice as steep as the demand curve, a tariff imposed on a foreign monopoly seller will raise the domestic price by _______________ of the tariff and lower the seller's net price by _______________ of the tariff.

A) one-fourth; three-fourths
B) 10%; 90%
C) one-half; one-half
D) 100%; 0%