A tax in an industry would result in:
a. a decrease in consumer surplus
b. a decrease in producer surplus
c. a decrease in the gains from trade.
d. all of the above.
d
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The industry demand curve for labor is the
A) horizontal sum of individual firm labor demand curves. B) vertical sum of individual firm demand curves. C) representative firm's demand curve multiplied by the number of firms. D) none of the above
A payday loan company has decided to open several new locations in the city. To decide where to open these locations it hires consultants and pays them per store opened. At the end of the quarter, the company notices a many of the new stores' sales volume fail to meet expectations. This is because
a. The consultants are paid per store and not just profitable store locations b. The consultants are paid per store and hence choose the best locations c. The consultants would always choose the best locations d. None of the above