If a local government starts collecting an ad valorem tax of on the revenue of a

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If a local government starts collecting an ad valorem tax of α on the revenue of a competitive firm (and all other firms are located outside this jurisdiction), what happens to the firm's demand curve for labor?

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Microeconomics Theory and Applications with Calculus

ISBN: 978-0133019933

3rd edition

Authors: Jeffrey M. Perloff

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Question Posted: Dec 29, 2017 01:03 AM

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If a local government starts collecting an ad valorem tax of on the revenue of a

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Before the tax the competitive firms labor demand was p MP L After the tax t...View the full answer

Microeconomics Theory and Applications with Calculus

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