This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Identify two kinds of circumstances which may favor nonneutral taxes. What will be an ideal ... (Read 46 times)

Kthamas

  • Hero Member
  • *****
  • Posts: 546
on: Jun 29, 2018
Identify two kinds of circumstances which may favor nonneutral taxes.
 
  What will be an ideal response?

Question 2

What is meant by market power? What are the ways in which a monopoly gains market power?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

cuttiesgirl16

  • Sr. Member
  • ****
  • Posts: 345
Reply #1 on: Jun 29, 2018
Answer to Question 1

The two kinds of circumstances in which nonneutral taxes may be justified would be either the presence of externalities or the presence of other taxes.

Answer to Question 2

Market power relates to the ability of sellers to affect prices. For the monopolist, market power arises because of barriers to entry. Barriers to entry are obstacles that prevent potential competitors from entering the market. There are two types of market power that arise from barriers to entry: legal market power and natural market power. Legal market power occurs when a firm obtains market power through barriers to entry created not by the firm itself, but by the government. For example, firms gain market power through patents and copyrights. Natural market power arises when the monopolist owns or controls a key resource necessary for production or there are economies of scale in production over the relevant range of output.


Kthamas

  • Hero Member
  • *****
  • Posts: 546
Reply #2 on: Jun 29, 2018
Thank you


cuttiesgirl16

  • Sr. Member
  • ****
  • Posts: 345
Reply #3 on: Jun 29, 2018
No problemo


« previous next »
 

Did you know?

Bisphosphonates were first developed in the nineteenth century. They were first investigated for use in disorders of bone metabolism in the 1960s. They are now used clinically for the treatment of osteoporosis, Paget's disease, bone metastasis, multiple myeloma, and other conditions that feature bone fragility.

Did you know?

The highest suicide rate in the United States is among people ages 65 years and older. Almost 15% of people in this age group commit suicide every year.

Did you know?

For pediatric patients, intravenous fluids are the most commonly cited products involved in medication errors that are reported to the USP.

Did you know?

Russia has the highest death rate from cardiovascular disease followed by the Ukraine, Romania, Hungary, and Poland.

Did you know?

Today, nearly 8 out of 10 pregnant women living with HIV (about 1.1 million), receive antiretrovirals.

Identify the structures shown below by filling in the blanks. Identify the structures shown below by filling in the blanks.
Identify each stage of the life cycle Identify each stage of the life cycle
Marijuana Use and Binge Drinking in Emerging Adulthood Rates of most kinds of substance use peak in Marijuana Use and Binge Drinking in Emerging Adulthood Rates of most kinds of substance use peak in
A William Jennings Bryan poster alludes to religion: “no crown of thorns” and no “cross of gold.” Br A William Jennings Bryan poster alludes to religion: “no crown of thorns” and no “cross of gold.” Br
Testing client’s ability to identify dull sensation Testing client’s ability to identify dull sensation
Under ideal conditions, a single cell of the bacterium E. coli would divide every 20 minutes to ... Under ideal conditions, a single cell of the bacterium E. coli would divide every 20 minutes to ...
Video: Stroke volume - contractility definition

For a complete list of videos, visit our video library