A monopolist with constant marginal costs faces a demand curve with a constant elasticity of demand lower than -1, and does not practice price discrimination. If the government imposes a tax of $1 per unit of goods sold by the monopolist, the monopolist will increase his price by more than $1 per unit.

A monopolist with constant marginal costs faces a demand curve with a constant elasticity of demand lower than -1, and does not practice price discrimination. If the government imposes a tax of $1 per unit of goods sold by the monopolist, the monopolist will increase his price by more than $1 per unit.

A monopolist with constant marginal costs faces a demand curve with a constant elasticity of demand lower than -1, and does not practice price discrimination. If the government imposes a tax of $1 per unit of goods sold by the monopolist, the monopolist will increase his price by more than $1 per unit.




Answer: True