If the demand curve is linear, then it will have twice the slope of the marginal revenue curve in this market, and if a per-unit tax is applied to goods, then the price will rise by twice the amount of the tax. Price minus marginal cost all over price is equivalent to the ne
If the demand curve is linear, then it will have twice the slope of the marginal revenue curve in this market, and if a per-unit tax is applied to goods, then the price will rise by twice the amount of the tax. Price minus marginal cost all over price is equivalent to the negative inverse of demand elasticity in this market, and is also known as the Lerner Index. Deadweight loss results from the difference between the gain in producer surplus and the loss of consumer surplus, and the Herfindahl-Hirschman index for this type of market is ten thousand, which indicates that the entire market share lies with one seller. FTP, identify this type of market in which there is only one producer.
If the demand curve is linear, then it will have twice the slope of the marginal revenue curve in this market, and if a per-unit tax is applied to goods, then the price will rise by twice the amount of the tax.