Answer:
The consumer will pay $200 after the tax is imposed.
Explanation:
if the tax of $20 per unit is levied on the consumers of guitars, thenthe demand: P = 300 - 0.5*Q
180 + 20 = 300 - 0.5*Q
Therefore, The consumer will pay $200 after the tax is imposed.
Answer:
Firms make normal profits
Explanation:
Monopolistic competition is characterized by many firms selling similar but differentiated products. Each firm sets its price because they sell slightly different products. There are insignificant or no barriers to entry or exit in a monopolistic competition.
It is possible to make abnormal profits in monopolistic competition in the short run. Due to ease of entry and exit, a firm with abnormal profits will face competition from new entrants. In the long-run, no firm will dominate the market, which means all firms will be making normal profits.
Answer:
$9,097
Explanation:
Net cash flow from operating activities = + $47,042
Net cash flow from investing activities = - $21,831
Net cash flow from financing activities = - $28,397
Net cash flows for the period = - $3,186
Beginning cash account balance = $12,283
Net cash flows for the period = - $3,186
Ending cash balance = $9,097
Answer:
the increase in taxes as a percentage of the increase in income
Explanation:
"Marginal" anything in business or economics refers to rate of change. The marginal tax rate is the tax paid on the next unit of income. That is, it is ...
the increase in taxes as a percentage of the increase in income
