Which of the following statements about excise taxes is TRUE? ...

[sammy]

Which of the following statements about excise taxes is TRUE?
 
  A) The producer will increase the price of the good by the amount of the excise tax.
  B) The equilibrium price will increase and the equilibrium quantity will remain unchanged.
  C) Both the consumer and producer pay part of the excise tax.
  D) Consumers will refuse to pay excise taxes forcing the producers to pay it.

Question 2

Over the past several decades, U.S. firms have faced more competition from overseas firms. Does this have any impact on the market power of U.S. oligopoly firms?
 
  A) no, because domestic firms in oligopoly markets are always so dominant that overseas producers have little or no impact on those markets
  B) no, because the United States government has effectively blocked all imports that might compete with domestic firms in oligopoly industries
  C) Yes, competition from overseas firms can substantially limit domestic firms' market power.
  D) There is no way to know.

[meryzewe]

Answer to Question 1

C

Answer to Question 2

C

[sammy]

Wow, this really help

[yeungji]

Great answer, keep it coming