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g Suppose you place a lump-sum tax on a monopolist. How will that affect its output and pricing decisions

User Tiffy
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Answer:

The lump-sum tax placed on the monopolist will result to a decrease in production output and an increase in the price of the product.

Step-by-step explanation:

In Economics, a monopolist is an entity with almost total control of a market or industry. Since it is not a price taker, it determines the production quantity and the market price of its product. By its nature, a monopoly, which is a product of extreme capitalism, is not good for an economy. Some of the disadvantages of a monopoly are the restriction of market output, the charging of higher prices than in a more competitive market, and the reduction of consumer surplus and economic welfare.

User ScanQR
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