Compare and contrast the tax base with the tax rate structure. ...

[moongchi]

Compare and contrast the tax base with the tax rate structure.
 
  What will be an ideal response?

Question 2

Explain what a perfectly contestable market means. Give an example of a perfectly contestable market. Explain why the outcome in a perfectly contestable market is that firms produce efficiently.
 
  What will be an ideal response?

[cupcake16]

Answer to Question 1

The base of a tax is the measure or value upon which the tax is levied. The rate structure of a tax determines the portion of the base that must be paid in tax.

Answer to Question 2

A perfectly contestable market is a market in which entry and exit are costless. An example of a perfectly contestable market is the market for trucking services. The firms are forced to behave efficiently because of the threat of competition.

[moongchi]

Correct answers!

[cupcake16]

Great! Please up vote