Categories Economics In perfect competition, increase in profit tax ____________ profit. Post author By thelooknow Post date March 22, 2022 A. reduce B. increase C. keeps consatant D. None of the above CORRECT ANSWER IS: reduce ← In perfect competition, effect of lump-sum tax is considered same as the effect of change in ____________ cost. → In perfect competition, the effect of profit tax is considered as the change in average _________ cost and _______________ tax.