Figure 6-14 the Vertical Distance Between Points a and B Represents the Represents

question 142

Multiple Choice

Figure 6-14
The vertical distance between points A and B represents the tax in the market.

-Refer to Figure 6-14.The effective price that sellers receive after the tax is imposed is

• A) $6.
• B) $10.
• C) $16.
• D) $24.

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Definitions:

Profitability

The ability of a business to generate income in excess of its expenses, resulting in profit.

Net Margin

A financial metric that represents the percentage of revenue remaining after all operating expenses, interest, taxes, and preferred stock dividends have been deducted.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been deducted from total revenue.

Sales

The activity or process of selling products or services, which involves transactions between buyers and sellers.