A sales tax of $1 per unit of output is placed on a particular firm whose product
Question:
a) How will this tax affect the cost curves for the firm?
b) What will happen to the firm’s price, output, and profit?
c) Will there be entry or exit in the industry?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 53% (13 reviews)
a With a tax of 1 per unit all the firms cost curves except those based solely on fixed costs ...View the full answer
Answered By
Utsab mitra
I have the expertise to deliver these subjects to college and higher-level students. The services would involve only solving assignments, homework help, and others.
I have experience in delivering these subjects for the last 6 years on a freelancing basis in different companies around the globe. I am CMA certified and CGMA UK. I have professional experience of 18 years in the industry involved in the manufacturing company and IT implementation experience of over 12 years.
I have delivered this help to students effortlessly, which is essential to give the students a good grade in their studies.
3.50+
2+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Economics questions
-
For a good supplied by a monopolist, how does a sales tax of $1 per item affect the marginal revenue curve?
-
Every firm in the widget industry has fixed costs of $6 and faces the following marginal cost curve: Quantity Marginal Cost 1 ..........$2 2 .......... 4 3 .......... 6 4 .......... 8 5 ..........10...
-
The Evolution of the Fashion Industry: Consider the market for clothes and suppose there exist 100 different styles that can be produced and can be arranged (and equally spaced) on a circle. Among...
-
Hehtoc-yrityksen tuloslaskelma on esitetty alla. Yrityksen valmistuskapasiteetti on 120.000 kpl vuodessa. Myyntituotot 80.000 kpl 20 Myytyjen tuotteiden kustannukset Vlittmt aineet Vlitn ty...
-
Describe the relations among the income statement, the schedule of cost of goods manufactured, and a detailed listing of factory overhead costs.
-
Ixabepilone is a cytotoxic compound approved by the FDA in 2007 for the treatment of advanced breast cancer. Bristol-Myers Squibb is marketing this new drug under the trade name Ixempra. Draw the...
-
The hose shown in Fig. P8.68 will collapse if the pressure within it is lower than 10 psi below atmospheric pressure. Determine the maximum length, \(\ell\), allowed if the friction factor is 0.015...
-
Consider customer lifetime value (CLV). Choose a business and show how you would go about developing a quantitative formulation that captures the concept. How would that business change if it totally...
-
Explain the significance of phase-change heat transfer in thermal management systems. How do materials with high latent heat contribute to improved thermal energy storage and heat transfer efficiency...
-
Essay: (30 points) Answer the question as indicated to earn all available points. 49. A Chemistry student was given the following mixture: nickel filings, small Styrofoam pellets, sugar, sand, and...
-
Consider a city that has a number of hot dog stands operating throughout the downtown area. Suppose that each vendor has a marginal cost of $1.50 per hot dog sold and no fixed cost. Suppose the...
-
A sales tax of 10% is placed on half the firms (the polluters) in a competitive industry. The revenue is paid to the remaining firms (the non polluters) as a 10% subsidy on the value of output sold....
-
Draw the bode plot for the network function.
-
Types of Issues (disorders)this therapy helps: -Psychoanalysis/Psychotherapy -Client-centered therapy -Systematic desensitization/Behavioral therapy -Aversive conditioning -Cognitive therapy for...
-
What are the implications of using structural irony in narrative fiction, particularly in relation to the author-reader relationship and the construction of meaning within the text ? Explain
-
Farmer owns a farming business, which will make $150,000 per year if the weather is normal, but make $50,000 if there is a drought. There is an 80% chance that the weather is normal, and there is a...
-
How do authors utilize situational irony to challenge societal norms and conventions, as seen in the works of authors from the Harlem Renaissance or the Beat Generation ?
-
When comparing the effectiveness of insight therapies to drug therapies, what is the result?
-
Solve for x. (a) log 3 x = -1 (b) log 2 x = -4
-
The packaging division of a company having considered several alternative package designs for the company's new product has finally brought down their choices to two designs of which only one has to...
-
1. Consumer Compensation. Consider the story of Coca-Cola and the scoreboard in the chapter. Your job is to fully compensate each student for the cost associated with the soft-drink monopoly. Suppose...
-
1. A patent increases the incentive to develop new products because it ________ the price of the product and thus generates profit to cover a firms costs of _______. 2. In some cases, a patent is...
-
1. A patent increases the incentive to develop new products because it ________ the price of the product and thus generates profit to cover a firms costs of _______. 2. In some cases, a patent is...
-
Apply Euler's method by hand with N = 4 to find yo, Y1, Y2, Y3, Y4 on [0,1] where Y' y' = - 2y + 3t y(0) =1 Note: Please don't use Python for this. You are allowed to use a calculator do the...
-
What amount paid on September 6 is equivalent to $ 2 , 6 0 0 paid on the following December 1 if money can earn 6 . 6 % ? ( Use 3 6 5 days a year. Do not round intermediate calculations and round...
-
For R1= 6.8k, and R2= 1k, Then: V(1) = v V. 1(2) = mA.
Study smarter with the SolutionInn App