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Originally Posted by Weitz
are the flames losing out on revenue due to GST too? Seems like such a dumb argument to me.
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Every business is.
Any negative externality artificially reduces profit maximization for the firm.
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Taxes create deadweight loss because they prevent people from buying a product that costs more after taxing than it would before the tax was applied. Deadweight loss is the loss of something good economically that occurs because of the tax imposed.
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Ticket tax is a second externality with the only difference being that it does not result in a deadweight loss. I think
Might be econ 301,or something