When Price Competition Is Fierce,the Incidence of the Corporate Income

question 3

Multiple Choice

When price competition is fierce,the incidence of the corporate income tax

• A)Cannot be passed on to customers or suppliers,and must be borne solely by shareholders
• B)May be passed on to employees through lower compensation
• C)Is borne primarily by customers through higher prices or lower product quality
• D)Can be mitigated only with tax reform

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