A profit tax on a monopolist will have no effect on the profit maximizing price and quantity O will have no effect on the profit maximizing quantity but the price is going to be higher. O will have no effect on the profit maximizing price but the quantity is going to be lower. will make the price higher and the quantity is lower.
A profit tax on a monopolist will have no effect on the profit maximizing price and quantity O will have no effect on the profit maximizing quantity but the price is going to be higher. O will have no effect on the profit maximizing price but the quantity is going to be lower. will make the price higher and the quantity is lower.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:A profit tax on a monopolist
will have no effect on the profit maximizing price and quantity
will have no effect on the profit maximizing quantity but the price is going to be
higher.
will have no effect on the profit maximizing price but the quantity is going to be
lower.
O will make the price higher and the quantity is lower.
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