This topic contains a solution. Click here to go to the answer

Author Question: Assume that the world price of Good A is 8 per unit while its domestic price is 6, and the marginal ... (Read 46 times)

imanialler

  • Hero Member
  • *****
  • Posts: 539
Assume that the world price of Good A is 8 per unit while its domestic price is 6, and the marginal cost incurred by domestic producers for producing one unit of Good A is 5 . If the government imposes a tax of 3 per unit on domestic producers, which of the following situations will be observed?
 a. The tax will increase the price of Good A in the domestic market.
  b. The tax will increase the world price of Good A.
  c. The tax will decrease the profit earned by domestic producers.
  d. The tax will decrease the price of Good A in the domestic market.

Question 2

Under perfect competition, the per unit revenue of a firm is equal to its marginal revenue.
 a. True
  b. False
  Indicate whether the statement is true or false



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

cat123

  • Sr. Member
  • ****
  • Posts: 310
Answer to Question 1

C

Answer to Question 2

True




imanialler

  • Member
  • Posts: 539
Reply 2 on: Jun 30, 2018
Wow, this really help


yeungji

  • Member
  • Posts: 319
Reply 3 on: Yesterday
Gracias!

 

Did you know?

Cutaneous mucormycosis is a rare fungal infection that has been fatal in at least 29% of cases, and in as many as 83% of cases, depending on the patient's health prior to infection. It has occurred often after natural disasters such as tornados, and early treatment is essential.

Did you know?

The people with the highest levels of LDL are Mexican American males and non-Hispanic black females.

Did you know?

Atropine, along with scopolamine and hyoscyamine, is found in the Datura stramonium plant, which gives hallucinogenic effects and is also known as locoweed.

Did you know?

Medication errors are three times higher among children and infants than with adults.

Did you know?

People with alcoholism are at a much greater risk of malnutrition than are other people and usually exhibit low levels of most vitamins (especially folic acid). This is because alcohol often takes the place of 50% of their daily intake of calories, with little nutritional value contained in it.

For a complete list of videos, visit our video library