AP Microeconomics Review for Unit 5 - Imperfect Competition - Part 10

[gewalker72]

I'll get you a detailed response from th teacher shortly.

[gewalker72]

Cameraman here: keep in mind that govt's can deficit spend so there isn't a 1 to 1 correllation

[DannyXMage]

wait doesn't government subsidies come from the tax payer's money?

so basically... if the governemnt have a price ceiling lower than the Monopolist's profit, and give them subsidies, we, as the taxpayers, still pay as if there was no ceiling, or higher ceiling...just indirectly..