How do a monopoly lump-sum profits tax and a monopoly sales tax differ in their effects on the monopolist?

Question

Quizplus · Accepted Answer

A lump-sum profits tax is paid entirely by the monopolist and leads to a reduction in their profit. However, a sales tax is partially passed on to the consumers in the form of higher prices. This means that the monopolist may not bear the full burden of the tax and consumers may end up paying a portion of it through higher prices.

How Do a Monopoly Lump-Sum Profits Tax and a Monopoly