While taxing inelastic goods minimizes social costs from ...

[viki]

While taxing inelastic goods minimizes social costs from taxation, it frequently conflicts with traditional notions of fairness.
 
  a. True b. False

Question 2

Suppose that for each firm in the competitive market for potatoes, long-run average cost is minimized at 0.20 per pound when 500 pounds are grown. If the long-run supply curve is horizontal, then
 
  A) some firms will enjoy long-run profits because they operate at minimum average cost.
  B) the long-run price will be 0.20 per pound.
  C) each consumer will purchase 100 worth of potatoes.
  D) the long-run price will be set just above 0.20 per pound.

[macagn]

Answer to Question 1

a

Answer to Question 2

B

[viki]

Excellent

[miss.ashley]

Gracias!