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

Author Question: Assume that the world price of Good A is 8 per unit while its domestic price is 6, and the marginal ... (Read 47 times)

imanialler

  • Hero Member
  • *****
  • Posts: 539
on: Jun 30, 2018
Assume that the world price of Good A is 8 per unit while its domestic price is 6, and the marginal cost incurred by domestic producers for producing one unit of Good A is 5 . If the government imposes a tax of 3 per unit on domestic producers, which of the following situations will be observed?
 a. The tax will increase the price of Good A in the domestic market.
  b. The tax will increase the world price of Good A.
  c. The tax will decrease the profit earned by domestic producers.
  d. The tax will decrease the price of Good A in the domestic market.

Question 2

Under perfect competition, the per unit revenue of a firm is equal to its marginal revenue.
 a. True
  b. False
  Indicate whether the statement is true or false


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

cat123

  • Sr. Member
  • ****
  • Posts: 310
Reply #1 on: Jun 30, 2018
Answer to Question 1

C

Answer to Question 2

True


imanialler

  • Member
  • Posts: 539
Reply 2 on: Jun 30, 2018
Thanks for the timely response, appreciate it

ghepp

  • Member
  • Posts: 361
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

People with alcoholism are at a much greater risk of malnutrition than are other people and usually exhibit low levels of most vitamins (especially folic acid). This is because alcohol often takes the place of 50% of their daily intake of calories, with little nutritional value contained in it.

Did you know?

Disorders that may affect pharmacodynamics include genetic mutations, malnutrition, thyrotoxicosis, myasthenia gravis, Parkinson's disease, and certain forms of insulin-resistant diabetes mellitus.

Did you know?

The first oncogene was discovered in 1970 and was termed SRC (pronounced "SARK").

Did you know?

All adults should have their cholesterol levels checked once every 5 years. During 2009–2010, 69.4% of Americans age 20 and older reported having their cholesterol checked within the last five years.

Did you know?

Children with strabismus (crossed eyes) can be treated. They are not able to outgrow this condition on their own, but with help, it can be more easily corrected at a younger age. It is important for infants to have eye examinations as early as possible in their development and then another at age 2 years.

Map of the World's Religions Map of the World's Religions
Each year, the leaders of the world’s eight most powerful nations meet in a secluded place to make ... Each year, the leaders of the world’s eight most powerful nations meet in a secluded place to make ...
Ten Leading Causes of Death in the World, 2011 Ten Leading Causes of Death in the World, 2011
How to create a price index to calculate inflation for a basket of goods How to create a price index to calculate inflation for a basket of goods
Carrots are a good source of vitamin A Carrots are a good source of vitamin A
In ABC, A=90, b=3 cm, c=7 cm. Solve for all unknowns to the nearest tenth of a unit. In ABC, A=90, b=3 cm, c=7 cm. Solve for all unknowns to the nearest tenth of a unit.
Video: Global warming and its effect on climate change

For a complete list of videos, visit our video library