Author Question: Refer to Figure 4-9. For each unit sold, the price sellers receive after the tax (net of tax) is ... (Read 108 times)

Coya19@aol.com · **on:** Jun 29, 2018

Refer to Figure 4-9. For each unit sold, the price sellers receive after the tax (net of tax) is

A) 12. B) 8. C) 4.40. D) 3.

Question 2

What decision must be made by firms with market power that is not made by firms which operate in perfectly competitive markets? Explain.

What will be an ideal response?

kswal303 · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

D

Answer to Question 2

Firms with market power must choose what price to charge for their products. Firms in perfect competition do not set price because they are price takers.