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:

Hemiparesis

A condition of weakness or partial paralysis affecting only one side of the body.

Hemiplegia

Paralysis of one side of the body, often resulting from a stroke or brain injury.

Peripheral Nervous System

The part of the nervous system consisting of the nerves and ganglia outside of the brain and spinal cord.

Neurons

Specialized cells that transmit nerve impulses; the basic working unit of the brain and the nervous system.