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Question
Figure 18-2
Figure 18-2 shows a demand curve and two sets of supply curves, one set more elastic than the other.
Refer to Figure 18-2. If the government imposes an excise tax of $1.00 on every unit sold, the producer's burden of the tax
A) is Pa- Pdunder either supply curve.
B) is Pb- Peunder either supply curve.
C) is Pa- Pdif the supply curve is S0 and Pb- Peif the supply curve is S1.
D) is Pc- Pdif the supply curve is S0 and Pc- Peif the supply curve is S1.
Answer
This answer is hidden. It contains 1 characters.
Related questions
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Perfectly competitive industries tend to produce low-priced, low-technology products.
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The market demand curve for a perfectly competitive industry is the horizontal summation of each individual firm's demand curve.
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If a firm in a perfectly competitive industry introduces a lower-cost way of producing an existing product, the firm will be able to earn economic profits in the long run.
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Which of the following describes a difference between allocative efficiency and productive efficiency in a perfectly competitive market?
A) Allocative efficiency is achieved only in the long run. Productive efficiency is achieved only in the short run.
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Suppose two countries use different combinations of inputs, such as labor and capital, to produce the same product. This implies all of the following except that
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B) the relative input prices.
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Which of the following would be categorized as an opportunity cost?
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b. the cost of purchasing supplies for your house-cleaning business
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A) a only
B) a and c only
C) b and c only
D) all of the above