When is monopoly production most efficient?

a) when the government produces public goods

b) when average cost increases as output rises

c) when economies of scale exist

d) when it makes good political sense

A control method for the sale of liquor is used by states to

a) allow private firms to distribute liquor and control them through the excise tax

b) use private firms to distribute liquor under the control of the state

c) allow states to control the wholesale distribution of liquor

d) none of the answers

The idea that individuals with same economic capacity should pay the same tax represents

a) vertical equity

b) horizontal equity

c) tax farirness

d) common sense tax system