Suppose that the government levied a lump-sum tax on a monopolist. How would such a tax affect the monopolist’s pricing and output decisions and

Suppose that the government levied a lump-sum tax on a monopolist. How would such a tax affect the monopolist’s pricing and output decisions and profit?

Suppose that the government levied a lump-sum tax on a monopolist. How would such a taxaffect the monopolist’s pricing and output decisions and profit?Answer:A lump-sum tax on a monopolist would…