Internet interventions are designed to combat negative word-of-mouth communications

For a firm facing a marginal income tax rate of 30%, what is the after-tax cash flow effect of: (a) a $2,600 increase in contribution margin during the year, and (b) a $1,000 increase in cash operating expenses?

(a) Effect on after-tax flow to contribution margin: (b) Effect on after-tax cash flow to cash operating Expenses:

Competitive markets operate more efficiently when their participants have enough information to make informed choices.

a. true b. false