This topic contains a solution. Click here to go to the answer

Author Question: Discuss the thought process of the owners of a new business with regard to property taxes when ... (Read 75 times)

silviawilliams41

  • Hero Member
  • *****
  • Posts: 560
Discuss the thought process of the owners of a new business with regard to property taxes when deciding where to locate. Will they always locate where property taxes are lowest? Why or why not?
 
  What will be an ideal response?

Question 2

When deciding on output levels, members of a cartel
 
  A) set their output where MR = MC.
  B) produce the same level of output as if they were in a competitive market.
  C) take into account the impact of changes on members' profits.
  D) act as if they were monopolies.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

polinasid

  • Sr. Member
  • ****
  • Posts: 344
Answer to Question 1

When deciding where to locate a new business, business owners typically have their choice of several sites and thus can choose among various locations. While high property taxes create a disincentive to improve upon property, property taxes are used to provide government services. Thus businesses are concerned with whether the property tax covers the value of the services the business will receive from government. In other words, they will not always locate where property taxes are the lowest. They will locate in communities that have the optimal mix of public sector output at the right property tax price.

Answer to Question 2

C




silviawilliams41

  • Member
  • Posts: 560
Reply 2 on: Jul 1, 2018
Great answer, keep it coming :)


emsimon14

  • Member
  • Posts: 344
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

Did you know?

Pregnant women usually experience a heightened sense of smell beginning late in the first trimester. Some experts call this the body's way of protecting a pregnant woman from foods that are unsafe for the fetus.

Did you know?

According to research, pregnant women tend to eat more if carrying a baby boy. Male fetuses may secrete a chemical that stimulates their mothers to step up her energy intake.

Did you know?

According to the FDA, adverse drug events harmed or killed approximately 1,200,000 people in the United States in the year 2015.

Did you know?

Human neurons are so small that they require a microscope in order to be seen. However, some neurons can be up to 3 feet long, such as those that extend from the spinal cord to the toes.

Did you know?

Cucumber slices relieve headaches by tightening blood vessels, reducing blood flow to the area, and relieving pressure.

For a complete list of videos, visit our video library