Qn: "A monopolist prefers an ad valorem tax to a specific tax, other things equal." True of False?
I know a monopolist prefers specific tax because ad valorem takes a larger portion of their revenue, but I'm not sure how to explain it.
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Qn: "A monopolist prefers an ad valorem tax to a specific tax, other things equal." True of False?
I know a monopolist prefers specific tax because ad valorem takes a larger portion of their revenue, but I'm not sure how to explain it.
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