When a Per Unit Tax Is Imposed on the Sale

question 94

Multiple Choice

When a per unit tax is imposed on the sale of a product of a monopolist, the resulting price increase will:

• A) always be less than the tax.
• B) always be more than the tax.
• C) always be less than if a similar tax were imposed on firms in a competitive market.
• D) not always be less than the tax.

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The U.S. Securities and Exchange Commission, a federal agency responsible for enforcing federal securities laws and regulating the securities industry.

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