1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
aivan3 [116]
3 years ago
9

The government of Granita is thinking about imposing a very small tax on one or more of the following goods: anvils, books, and

cardigans. Anvils and books are both produced in competitive markets with constant marginal costs, while cardigans are produced by a monopoly with constant marginal costs. The elasticities of demand for the three goods are −3, −1.5, and −1.2, respectively. What good or goods should the government put the very small tax on if it wants to minimize the deadweight burden?
Business
1 answer:
Mariulka [41]3 years ago
6 0

Answer:

The government should tax Anvils and books but not cardigans

Explanation:

A perfect competition is characterised by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply.

A monopoly is when there is only one firm operating in an industry. The firm sets the market price for its good and services. The firm earns economic profit in the short and long run.

When the absolute value of elasticity is greater than 1, it means that demand is price elastic.

Elastic demand means a small change in price leads to a greater change in quantity demanded.

Deadweight loss refers to the loss in efficiency as a result of tax.

A competitive market produces as the social optimum, so the effect of tax would be very small but because the monopoly operates below social optimum, the cost of tax would be high.

I hope my answer helps you

You might be interested in
Is a stackelberg solution a Nash (stable) equilibrium? Explain. 2. Does the solution change if stackelberg game is considered in
e-lub [12.9K]

The Stackelberg solution can be used to find the perfect or stable Nash equilibrium or equilibria.

<h3>What is this equilibrium about?</h3>

Other answers:

Based on the above, Note that the strategy profile is one where one serves best each player, and based on the strategies of the other player and it covers the fact that all player playing in a Nash equilibrium must be in every subgame.

Note also that The Stackelberg leadership model is said to be a kind off strategic game  that is played in economics where the leader firm is known to moves first and then the follower firms is said to then move in a sequential manner and I think, the solution do not change if stackelberg game is considered in the long run.

I believe that the stackelberg leader will not collude with the stackelberg follower but in a lot of cases, there may be a collusion.

Yes, a Stackelberg leader can be more likely or less likely to merge with the follower firm as a merger can be profitable to them.

Learn more about equilibrium from

brainly.com/question/517289

#SPJ1

8 0
2 years ago
Padraig receives total employment compensation of $70,000 and had $2,000 in job expenses. Which of the following could be true a
dimulka [17.4K]

<u>Answer:</u> Option C

<u>Explanation:</u>

The total compensation along with benefits are $72000. When the employee benefits calculated the annual gross pay given in option C . 12.5% interest calculated on $64000 will give total compensation of $72000.

Calculation of total compensation

Employee benefits = $64000 x 12.5/100

                               =$8000

Annual compensation= $64000 +$8000

                                    =$72000

4 0
3 years ago
Read 2 more answers
The entry to record the distribution of the stock dividend would include
Iteru [2.4K]

The correct answer is B. A debit to common stock distributed.

<em>The entry will be stock dividends debit, paid-in capital which is in excess per common credit stock, stock dividends which are being distributed.</em>

In credit entry it records distribution and declaration of stock dividend which includes the debit to the retained earnings and also a credit to the common stock.

4 0
3 years ago
Hall and Donnell reported findings of five separate studies involving over 12,000 managers that explored the relationship betwee
Ugo [173]

Answer:

D) were highly likely to be in their lower-achieving group.

Explanation:

Theory X refers to a motivation theory developed by Douglas McGregor. Theory X can be described as a pessimistic view of humanity and human workers. Managers who support theory X tend to dislike their own work and believe everyone else dislikes their work, are not ambitious and believe everyone else is not ambitious either, and finally don't like to assume responsibility over their actions and believe everyone else is like them.

So it shouldn't be a surprise that managers who support theory X are underachievers.

4 0
3 years ago
Hirons Air uses two measures of activity, flights and passengers, in the cost formulas in its budgets and performance reports. T
Tatiana [17]

Answer:

$ 10,867 F

Explanation:

Actual results$305,100

Flexible budget [$56,840+ ($2,874× 89) + ($13 ×257)]

$56,840+$255,786+$3,34= $315,967

Spending variance $ 10,867

($305,100-$315,967)

The spending variance for plane operating costs in November would be closest to $ 10,867 because the actual expense is less than the flexible budget, which makes the variance favorable (F)

8 0
3 years ago
Other questions:
  • When a firm enjoys a competitive advantage, it attracts a significant amount of attention and its products or services can be at
    9·2 answers
  • Choose all that apply.
    8·2 answers
  • FordTech is a software company whose clients are based in France. The company has formed a team to decide the direction the orga
    15·1 answer
  • Suppose that Spain and Sweden both produce fish and wine. Spain's opportunity cost of producing a bottle of wine is 4 pounds of
    15·1 answer
  • Suppose selected comparative statement data for the giant bookseller Barnes &amp; Noble are presented here. All balance sheet da
    5·1 answer
  • If Wesley Corporation has 80,000 shares of common stock authorized. 50,000 shares of common stock issued, and holds 12,000 share
    10·1 answer
  • On January 1, Year 1, Barrett, Inc., purchased equipment and signed a note agreeing to pay $100,000 on December 31, Year 3. The
    7·1 answer
  • When needing to complete a currency exchange you should a _____
    15·1 answer
  • On January 1, 2021, the Excel Delivery Company purchased a delivery van for $51,000. At the end of its five-year service life, i
    5·1 answer
  • In this course, you learned the way people work is changing. Describe three alternative types of employment that have become pop
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!