The deadweight loss from a tax per unit of good will be smallest in a market with inelastic supply and inelastic demand.
The Deadweight loss refers to loss that occurs when supply and demand are not in equilibrium and thus, result in market inefficiency.
Usually, the value of the deadweight loss varies with the demand elasticity and supply elasticity.
So, when the demand or supply is inelastic, the deadweight loss of the taxation will be smaller because the quantity bought or sold varies less with price.
Therefore, the answer is B. because the deadweight loss from a tax per unit of good will be smallest in a market with inelastic supply and inelastic demand.
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Answer:
$48,000
Explanation:
The computation of the amount that should be reported as the intangible asset franchise is shown below
= Purchase value of franchise - amortization per year
= $60,000 - ($60,000 ÷ 5 years)
= $60,000 - $12,000
= $48,000
hence, the amount that should be reported as the intangible asset franchise is $48,000
Answer:
Option C Differentiating the market offering to create superior customer value
Explanation:
The reason is that when the product are differentiated from the rest of the products in the market, it creates a sense of superiority among products because of its quality, uniqueness and exceptional things that the company offer with the product. Due to differentiated strategy, the company is able to sell at a higher price which earns greater profit for the company.
