What effect does a lump-sum profit tax have on a monopolist? Select one: a. It causes the price to increase but has no effect on the output. O b. It has no effect on either the price or the output. C. It causes the output to increase but has no effect on the price. d. It causes the price to increase and the output to decrease. e. It causes the output to decrease but has no effect on the price.
What effect does a lump-sum profit tax have on a monopolist? Select one: a. It causes the price to increase but has no effect on the output. O b. It has no effect on either the price or the output. C. It causes the output to increase but has no effect on the price. d. It causes the price to increase and the output to decrease. e. It causes the output to decrease but has no effect on the price.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![What effect does a lump-sum profit tax have on a monopolist?
Select one:
a. It causes the price to increase but has no effect on the output.
b. It has no effect on either the price or the output.
C.
It causes the output to increase but has no effect on the price.
d. It causes the price to increase and the output to decrease.
e. It causes the output to decrease but has no effect on the price.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc8d3de83-68e6-4af4-966c-85743c41f21c%2F344a5df3-eb83-47e4-968e-9c934eec48b1%2Fxw51ii_processed.png&w=3840&q=75)
Transcribed Image Text:What effect does a lump-sum profit tax have on a monopolist?
Select one:
a. It causes the price to increase but has no effect on the output.
b. It has no effect on either the price or the output.
C.
It causes the output to increase but has no effect on the price.
d. It causes the price to increase and the output to decrease.
e. It causes the output to decrease but has no effect on the price.
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