Margaret Thatcher, the prime minister of Great Britain in the ...

[CBme]

Margaret Thatcher, the prime minister of Great Britain in the 1980s introduced a new system to replace local government taxes.
 
  The rates were replaced by the Community Charge or 'Poll Tax', which applied the same amount to every individual resident, with an 80 reduction for the unemployed. Inspite of the fact that this tax was unpopular and was eventually repealed can you think of any reason why it could be characterized as efficient? Can you think of any way that this tax could be evaded?

Question 2

Under what conditions does an oligopoly market result in the same outcome as monopoly? What does this imply for the oligopoly's long-run profits?
 
  What will be an ideal response?

[meganlapinski]

Answer to Question 1

It could be regarded as efficient in that there really isn't much that people can do to avoid the tax. It is very much like a head tax. However, since it is levied based on voter registration rolls one way to evade the tax is simply to stop registering to vote.

Answer to Question 2

Oligopoly results in the monopoly outcome when oligopolists are successful at colluding. Positive profits can persist in the long run.