Economy, asked by kvhamdan59, 1 month ago

what happens to the minopolust if the per unit tax is imposed

Answers

Answered by malikdivyanshi35
1

Explanation:

Unlike a lump-sum tax, a per-unit tax in monopoly causes an upward shift in the monopolist's average cost (AC) and marginal cost curves, by the amount of the tax, say, t. Consequently, the equilibrium output of the monopolist will fall and the price will rise.

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