As long as firms are profit maximizing, a tax on economic profits cannot be shifted and is borne only by the owners of the firm.

Name: As long as firms are profit maximizing, a tax on economic profits cannot be shifted and is borne only by the owners of the firm.
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Question

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A tax on economic profits is borne by the owners because economic profits are the residual earnings after all costs, including normal profits, have been accounted for.

As Long as Firms Are Profit Maximizing, a Tax on Economic