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coolcat coolcat
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5 years ago
If the government were to impose a lump-sum tax on a monopolist, what is likely to happen to the quantity produced of a commodity and the price charged relative to the situation where there is no lump-sum tax imposed?

• No change in price or quantity produced, only a reduction in profit

• The price would fall and the quantity produced would fall

• The price would fall but the quantity produced would rise

• No change in price, quantity produced, or profit would occur.
Textbook 
Introduction to Agricultural Economics

Introduction to Agricultural Economics


Edition: 7th
Authors:
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wrote...
5 years ago
No change in price or quantity produced, only a reduction in profit
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