If the Government Imposes a Specific Tax on a Monopoly,the

question 32

Multiple Choice

If the government imposes a specific tax on a monopoly,the consumer's tax incidence

• A) can exceed 100%.
• B) will always be between 0-100%.
• C) may be negative.
• D) will be the same as when the tax is imposed on a perfectly competitive firm.

---

Definitions:

Centralized Decision Making

A process where all key decisions within an organization are made by a central group or individual, with little or no input from lower-level staff.

Information Transfer

The process of moving data and knowledge from one entity or place to another, often through communication or technology.

Monitoring

The act of observing, checking, and keeping a continuous record of a process or quality over a period of time.

Principle

A fundamental truth or proposition that serves as the foundation for a system of belief or behavior or for a chain of reasoning.