Refer to Figure 4-9. For each unit sold, the price sellers ...

[Coya19@aol.com]

Refer to Figure 4-9. For each unit sold, the price sellers receive after the tax (net of tax) is
 
  A) 12. B) 8. C) 4.40. D) 3.

Question 2

What decision must be made by firms with market power that is not made by firms which operate in perfectly competitive markets? Explain.
 
  What will be an ideal response?

[kswal303]

Answer to Question 1

D

Answer to Question 2

Firms with market power must choose what price to charge for their products. Firms in perfect competition do not set price because they are price takers.

[Coya19@aol.com]

Thanks for the timely response, appreciate it

[atrochim]

Excellent