[Solved] How Do a Monopoly Lump-Sum Profits Tax and a Monopoly

Question 69
Multiple Choice
arrowQuestion 69arrow

How do a monopoly lump-sum profits tax and a monopoly sales tax differ in their effects on the monopolist?

A)A profit tax causes the price to rise,whereas the sales tax has no effect on the price.
B)A profit tax causes the output to fall,whereas the sales tax has no effect on the output.
C)A profit tax is totally paid by the monopolist,whereas a sales tax is partially passed on to consumers.
D)A sales tax has no effect on neither the price nor the output.
E)A sales tax has no effect on the monopolist's profit but a profit tax does.


10+ million students use Quizplus to study and prepare for their homework, quizzes and exams through 20m+ questions in 300k quizzes.


Explore our library and get Economics Homework Help with various study sets and a huge amount of quizzes and questions

Related Questions

Get Free Access Now!

Get free access by uploading any valuable academic documents


Invite your friends by sharing your unique referral link, and get a free access

Invite a friendInvite a friendInvite a friend
Join Us
Join Us

Sign up to get 5 free question for every quiz you visit. Or Subscribe and get instant access