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Economic- indirect taxation evaluation

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    is this a good one

    is this a good evaluation for the government using indirect taxation

    indirect taxes as a form of government intervention can lead to government failure because a rise in costs of production means small firms with small profits and higher average costs may not be able to withstand this increased cost of production and so will leave the market allowing more room for monopolies to form and increase market share because the bigger firms will be able to cope with the increased costs of production whereas small firms will not be able to so it may result in monopolies which leads to different types of market failures

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    (Original post by Puddles the Monkey)
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