Re: Monopoly

Posted by MI on May 29, 2013; 3:18pm
URL: http://discussion-forum.276.s1.nabble.com/Monopoly-tp7581456p7581471.html

Hi mauli,

you are right! There is no Dead-weight-loss.

Tax will increase the MC of the monopolist. But TR being constant he is bound to stick to his original production choice.

As same transactions are happening even after tax as before there is no dead-weight-loss.

Consumers are indifferent unless government redistribute the collected tax to them.

cheers :)