Author Question: The imposition of a new excise tax will A) increase equilibrium price and increase equilibrium ... (Read 53 times)

Charlie · **on:** Jun 29, 2018

The imposition of a new excise tax will

A) increase equilibrium price and increase equilibrium quantity.
B) increase equilibrium price and decrease equilibrium quantity.
C) decrease equilibrium price and increase equilibrium quantity.
D) decrease equilibrium price and decrease equilibrium quantity.

Question 2

Suppose that an industry consists of 10 firms, and the top 4 firms have annual sales of 2.5 million, 2 million, 1.5 million, and 1 million, respectively.

If the entire industry has annual sales of 10 million, the four-firm concentration ratio is A) 85 percent.
B) 50 percent.
C) 10 percent.
D) 70 percent.