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Author Question: An optimal corrective tax should be placed on _____. a. the sellers of the externality-generating ... (Read 68 times)

Beheh

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on: Jul 1, 2018
An optimal corrective tax should be placed on _____.
 
  a. the sellers of the externality-generating activity
  b. the inputs into the externality-generating activity
  c. the externality-generating activity
   d. the purchasers of the output of the externality-generating activity

Question 2

In the short run, a constant (as a percentage of profits) corporate income tax imposed on a monopolist will _____.
 
  a. cause capital to flee the industry
  b. cause output to fall
  c. leave output unchanged
   d. cause output to rise


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beccamahon

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Reply #1 on: Jul 1, 2018
Answer to Question 1

c

Answer to Question 2

c


Beheh

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Reply 2 on: Jul 1, 2018
Great answer, keep it coming :)

ricroger

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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