When obtaining information is costly, competition is A) less ...

[ssal]

When obtaining information is costly, competition is
 
  A) less effective at forcing prices down.
  B) more effective at forcing prices down.
  C) only effective at forcing prices u

Question 2

Refer to Table 20.2. Is the tax system represented in the table progressive, regressive, or neither one? How can you tell?
 
  What will be an ideal response?

[bigcheese9]

Answer to Question 1

A

Answer to Question 2

The tax system is regressive.
When income is 20,000, the tax payment is 2,000, so the tax rate is 10.
When income is 25,000, the tax payment is 2,250, so the tax rate is 9.
When income is 30,000, the tax payment is 2,400, so the tax rate is 8.
When income is 35,000, the tax payment is 2,450, so the tax rate is 7.
As income increases, the tax rate decreases, which means the tax is regressive.

[ssal]

Thank you

[bigcheese9]

Happy to help you