If the Government Charged a Tax on Monopolists Equal To

question 73

Essay

If the government charged a tax on monopolists equal to, say, 75 percent of their economic profits, what would happen to the level of output the firm would produce? What about the price? Explain.

---

Definitions:

Negative Reinforcement

A behavioral principle where the removal of an undesirable or unpleasant stimulus following a behavior increases the likelihood of that behavior being repeated in the future.

Nagging

A persistent annoyance or complaining about something in a repetitive and irritating manner.

Functional Analysis

A behavioral technique that identifies the antecedents and consequences of behavior to understand its purpose or function.

Motivation Behind Behavior

The underlying reasons or forces that drive an individual to act or behave in a certain way, which can be intrinsic or extrinsic in nature.