Imposition of an output tax on all firms in a competitive industry will result in
A) a downward shift in each firm's marginal cost curve.
B) a downward shift in each firm's average cost curve.
C) a leftward shift in the market supply curve.
D) the entry of new firms into the industry.
E) higher profits for the industry as price rises.
C
Economics
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If both buyers and sellers expect the price of a commodity to rise in the future, it is likely that the market clearing price ________ and the equilibrium quantity ________
A) will fall, cannot be predicted B) will rise, cannot be predicted C) cannot be predicted, will fall D) cannot be predicted, will rise
Economics
Gross revenue minus explicit and implicit costs is equal to
A) accounting profit. B) opportunity cost. C) economic profit. D) net worth.
Economics