a. What lump-sum tax would shut down the monopolist in Question 2 (assuming it does not price

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a. What lump-sum tax would shut down the monopolist in Question 2 (assuming it does not price discriminate as in Question 3)?

b. What would be the effect of a smaller lump-sum tax?

c. What would the effect of a $2 unit tax be on price and output?

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Economics Barrons Business Review Series

ISBN: 9781438008776

6th Edition

Authors: Walter J. Wessels

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Question Posted: Feb 18, 2024 04:01 AM

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a. What lump-sum tax would shut down the monopolist in Question 2 (assuming it does not price

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a Any lumpsum tax exceeding its prof...View the full answer

Economics Barrons Business Review Series

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