Kate Files Her Tax Return 36 Days After the Due

question 1762

Multiple Choice

Kate files her tax return 36 days after the due date. When she files the return, she sends a check for $2,000 which is the balance of the tax owed by her. Kate's penalty for failure to file a return will be

• A) 20% per month (or factor thereof).
• B) 0.5% per month (or factor thereof) up to a maximum of 25%.
• C) 5% per month (or factor thereof) up to a maximum of 25%.
• D) 25%.

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Definitions:

Efficiency

The optimal allocation of resources in a way that maximizes productivity or utility.

Price Discrimination

Price discrimination involves a seller charging different prices for the same product or service to different customers, based on factors like demand, customer attributes, or purchase volume.

Monopolistic Competition

Monopolistic competition describes a market structure where many firms sell products that are similar but not identical, allowing for some degree of market power and price setting.

Perfect Competition

A market structure characterized by many buyers and sellers, identical products, and free entry and exit, leading to efficient outcomes.