If the government's goal is to generate a certain amount of tax revenue,a specific tax and an ad valorem tax on a monopoly have the same impact on social welfare.

Name: If the government's goal is to generate a certain amount of tax revenue,a specific tax and an ad valorem tax on a monopoly have the same impact on social welfare.
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Question

Quizplus · Accepted Answer

The ad valorem tax will reduce output and consumer surplus by less than the specific tax would.

If the Government's Goal Is to Generate a Certain Amount