A profit tax on a monopolist will have no effect on the profit maximizing price and quantity will have no effect on the profit maximizing quantity but the price is going to be higher. O will have no effect on the profit maximizing price but the quantity is going to be lower. O will make the price higher and the quantity is lower.

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Answered: A profit tax on a monopolist will have no effect on the profit maximizing price and quantity will have no effect on the profit maximizing quantity but the price…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN: 9780190931919

Author: NEWNAN

Publisher: Oxford University Press

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Question

A profit tax on a monopolist
O will have no effect on the profit maximizing price and quantity
O will have no effect on the profit maximizing quantity but the price is going to be higher.
O will have no effect on the profit maximizing price but the quantity is going to be lower.
O will make the price higher and the quantity is lower.

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