Question

For questions 24 tbrougb 28, circle the corrat ansuer. If the government were to impose a lump-sum tax on a monopolist, what is likely to happen to the quantity produced of a commodity and the price charged relative to the situation where no lumpsum tax is imposed? a. The price would fall, but the quantity produced would rise. b. The price would fall and the quanticy produced would fall. c. The price would remain the same and the quantity produced would fall. d. No change in price or quantity produced would occur, only a reduction in profit.

   For questions 24 tbrougb 28, circle the corrat ansuer.
If the government were to impose a lump-sum tax on a monopolist, what is likely to happen to the quantity produced of a commodity and the price charged relative to the situation where no lumpsum tax is imposed?
a. The price would fall, but the quantity produced would rise.
b. The price would fall and the quanticy produced would fall.
c. The price would remain the same and the quantity produced would fall.
d. No change in price or quantity produced would occur, only a reduction in profit.

Introduction to agricultural economics

John B. Penson,… 7th Edition

Chapter 9, Problem 28

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Step 1

A lump-sum tax is a fixed amount of tax imposed by the government, regardless of the economic activity or output level of a firm. This type of tax does not vary with the quantity produced or sold by the firm. Show more…

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For questions 24 tbrougb 28, circle the corrat ansuer. If the government were to impose a lump-sum tax on a monopolist, what is likely to happen to the quantity produced of a commodity and the price charged relative to the situation where no lumpsum tax is imposed? a. The price would fall, but the quantity produced would rise. b. The price would fall and the quanticy produced would fall. c. The price would remain the same and the quantity produced would fall. d. No change in price or quantity produced would occur, only a reduction in profit.

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