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What kind of market would describe the museum? Perfectly competitive market Natural monopoly Single-price monopoly The mayor proposes financing the museum with a lump-sum tax
What kind of market would describe the museum? Perfectly competitive market Natural monopoly Single-price monopoly The mayor proposes financing the museum with a lump-sum tax of $24 and then opening the museum to the public for free. Under this system, each person would visit 10 times. The benefit each person would get from the museum would be $26 . (Hint: You can measure the benefit as consumer surplus minus the new tax.) The mayor's anti-tax opponent says the museum should finance itself by charging an admission fee. The lowest price the museum can charge without incurring losses is $4 . (Hint: Find the number of visits and museum profits for prices of $2, $3, $4, and $5.) At this price, each resident's consumer surplus is $18 . Which of the following statements are true? Check all that apply. Revenue per person is the same regardless of whether an admission fee or the mayor's plan is used. Consumers are worse off with the admission fee than under the mayor's plan. Total societal welfare is better with the admission fee than under the mayor's plan
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