Consider a Monopolist That Is Earning Profits in the Long

question 109

Multiple Choice

Consider a monopolist that is earning profits in the long run.If the government imposes a lump-sum tax on this monopolist (that is less than its profits) ,then

• A)output would decrease and price to consumers would increase.
• B)neither output nor price would change.
• C)the output would remain the same while price increased.
• D)the monopolist would cease production.
• E)new firms would enter the industry.

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Definitions:

Simp

Colloquially, a person who is perceived as excessively deferential, subservient, or attentive, often to someone they are attracted to, potentially to their own detriment.

Add

A mathematical operation that combines two or more amounts to get a total.

Simp

In colloquial use, shorthand for 'simpleton'; in internet culture, someone overly submissive to someone they're attracted to without reciprocation.

Conj

A conjunction is a logical operator that connects two statements in a way that the resulting statement is true only if both connected statements are true.