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2. Consider a prot maximizing perfectly compeu'tive rm that currently has to payr a per unit tax with tax rate I and produces an] units

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2. Consider a prot maximizing perfectly compeu'tive rm that currently has to payr a per unit tax with tax rate I and produces an] units of output. If this taxis replaeetl hythe lump sum tax T, where T = t x q[ t}, then underthe same prices the maximum prot of this rm under T can never he lower than its maximum prot under initial per-unit-tax. True or false

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