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Which of the following is the most common government response to a classic monopoly's tendency to produce less output at a higher cost than the

  1. Which of the following is the most common government response to a classic monopoly's tendency to produce less output at a higher cost than the socially optimal quantity?

A.A per-unit subsidy

B.A patent

C.A price floor

D.Antitrust legislation

E.A per-unit tax

2.Use the graph to answer the question that follows.

image text in transcribedimage text in transcribed
S Price ($) T U $600 V W $400 X - D 15.000 20.000 QuantityPrice ($) S 4 3.5 3 2 D 360 540 Quantity

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