A tax on sellers usually causes buyers to pay more for the good and sellers to receive less for the good than they did before the tax was levied

If firms receive an economic forecast predicting future increases in the growth of real GDP, they are likely to respond by

A) increasing their level of investment spending to increase future production capacity. B) decreasing their level of investment spending to decrease current production capacity. C) increasing their level of investment spending to increase current production capacity. D) decreasing their level of investment spending to decrease future production capacity.

Why does an efficient distribution of outputs among households occur in perfectly competitive markets?

What will be an ideal response?