Question
6.8) Indicate whether each of the following statements is true, false, or
uncertain. Explain why.
a.
A proportional tax on all commodities including leisure is equivalent to a lump sum tax.
b.
Efficiency is maximized when all commodities are taxed at the same rate.
c.
Average cost pricing for a natural monopoly allows the enterprise to break even, but the
outcome is (most likely) inefficient

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