Author Question: How a sales tax is divided between buyers and sellers is determined by A) the government's choice ... (Read 63 times)

olgavictoria · **on:** Jun 29, 2018

How a sales tax is divided between buyers and sellers is determined by

A) the government's choice of whom to tax.
B) who the law says must pay the tax.
C) the elasticities of supply and demand.
D) the revenue needs of government.

Question 2

A perfectly competitive firm is producing at the point where its marginal cost equals its marginal revenue. If the firm boosts its output, its total revenue will ________ and its profit will ________.

A) rise; rise
B) rise; fall
C) fall; rise
D) fall; fall