Often, If a Monopoly Exists, Other Firms Try to Figure

question 20

Essay

Often, if a monopoly exists, other firms try to figure out how to break it up - to get a share of the monopolist's profit. Describe two things firms do to try to enter a monopolized industry. Give an example of each.

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Definitions:

Income Tax Withholding

The process by which employers withhold a portion of employees' salaries or wages to pay directly to the government as an advance payment of income tax.

Payroll Tax Expense

Taxes that are incurred by an employer based on the wages and salaries paid to employees, including social security taxes, Medicare taxes, and unemployment taxes.

FICA Taxes

Federal taxes in the United States that fund Social Security and Medicare, required to be withheld from employees' paychecks.

State Income Taxes

State-specific levies on the earnings of individuals and businesses within their territories.