Governments can implement the excess profit tax as an intervention measure to correct for market failure in a monopoly market. Under this measure Kerajaan boleh melaksanakan cukai untung berlebihan sebagai langkah intervensi untuk membetulkan kegagalan pasaran dalam pasaran monopoli. Di bawah langkah ini a. profit maximizing decisions of the firm are unaffected keuntungan memaksimumkan keputusan firma tidak terjejas b. profit maximizing decisions of the firm are affected and output is increased keputusan keuntungan pemaksimuman firma terjejas dan output ditingkatkan c. profit maximizing decisions of the firm are affected and price is lowered keputusan keuntungan pemaksimuman firma terjejas dan harga diturunkan d. the firm's average total cost will shift upwards although it will not have any effect on its marginal cost

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter9: Monopoly
Section: Chapter Questions
Problem 1SCQ: Classify the following as a government-enforced barrier to entry, a banker to entry that is not...
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Governments can implement the excess profit tax as an intervention measure to correct for market failure
in a monopoly market. Under this measure
Kerajaan boleh melaksanakan cukai untung berlebihan sebagai langkah intervensi untuk membetulkan kegagalan
pasaran dalam pasaran monopoli. Di bawah langkah ini.
a. profit maximizing decisions of the firm are unaffected
keuntungan memaksimumkan keputusan firma tidak terjejas
b. profit maximizing decisions of the firm are affected and output is increased
keputusan keuntungan pemaksimuman firma terjejas dan output ditingkatkan
c. profit maximizing decisions of the firm are affected and price is lowered
keputusan keuntungan pemaksimuman firma terjejas dan harga diturunkan
d. the firm's average total cost will shift upwards although it will not have any effect on its marginal cost
Transcribed Image Text:Governments can implement the excess profit tax as an intervention measure to correct for market failure in a monopoly market. Under this measure Kerajaan boleh melaksanakan cukai untung berlebihan sebagai langkah intervensi untuk membetulkan kegagalan pasaran dalam pasaran monopoli. Di bawah langkah ini. a. profit maximizing decisions of the firm are unaffected keuntungan memaksimumkan keputusan firma tidak terjejas b. profit maximizing decisions of the firm are affected and output is increased keputusan keuntungan pemaksimuman firma terjejas dan output ditingkatkan c. profit maximizing decisions of the firm are affected and price is lowered keputusan keuntungan pemaksimuman firma terjejas dan harga diturunkan d. the firm's average total cost will shift upwards although it will not have any effect on its marginal cost
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