Given below are two statements, one is labelled as Assertion A and the other is labelled as Reason R
Assertion A: A lumpsum tax imposed on a monopolist cannot be shifted to the consumers.
Reason R: The lumpsum tax becomes a part of his fixed cost and it does not affect the marginal cost of production.
In light of the above statements, choose the most appropriate answer from the options given below
1
Both A and R are correct and R is the correct explanation of A
2
Both A and R are correct but R is NOT the correct explanation of A
3
A is correct but R is not correct
4
A is not correct but R is correct