Question
How would a per-unit tax and a lump-sum tax affect long-run production in a perfectly competitive market? 1) A per-unit tax and a lump-sum tax
How would a per-unit tax and a lump-sum tax affect long-run production in a perfectly competitive market?
1) A per-unit tax and a lump-sum tax will increase price and decrease quantity
2) A per-unit tax will increase price and decrease quantity; a lump-sum tax will have no effect on production
3) A per-unit tax and a lump-sum tax will decrease price and quantity
4) A per-unit tax will have no effect on production; a lump-sum tax will increase price
5) Neither tax affects production
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Modeling Monetary Economies
Authors: Bruce Champ, Scott Freeman, Joseph Haslag
4th Edition
1316508671, 1316508676, 9781316723302 , 978-1107145221
