Imposition of an Output Tax on All Firms in a Competitive

question 108

Multiple Choice

Imposition of an output tax on all firms in a competitive industry will result in:

• A) a downward shift in each firm's marginal cost curve.
• B) a downward shift in each firm's average cost curve.
• C) a leftward shift in the market supply curve.
• D) the entry of new firms into the industry.
• E) higher profits for the industry as price rises.

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Definitions:

Queue 1

Typically refers to the first in a series of waiting lines or sequences where processes or people await their turn for service.

Customer

An individual or entity that purchases goods or services from a business.

Average Time

The mean value of a set of time measurements, often used to assess performance or efficiency.

Work Station 1

A specific area or desk set up for an individual to perform their job tasks, often equipped with necessary tools and technology.