Economists have long argued that if you want to tax away excess profits without affecting locative efficiency,

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Economists have long argued that if you want to tax away excess profits without affecting locative efficiency, you should use a lump-sum tax instead of an excise or sales tax. Use the concepts developed in the chapter to support this position.

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Managerial Economics

ISBN: 978-0324588866

12th edition

Authors: Mark Hirschey

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Question Posted: Feb 13, 2015 09:47 AM

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Economists have long argued that if you want to tax away excess profits without affecting locative efficiency,

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Lumpsum taxes only affect total fixed costs They are invariant with ...View the full answer

Managerial Economics

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