In a Competitive Market with a Downward-Sloping Demand Curve, a Tax

question 75

Multiple Choice

In a competitive market with a downward-sloping demand curve, a tax that increases the fixed cost of every firm will:

• A)reduce the number of firms supporting long-run equilibrium.
• B)increase the long-run equilibrium price.
• C)not cause the number of firms supporting long-run equilibrium to change.
• D)answers a and b.
• E)answers b and c.

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Definitions:

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A collection of data so large and complex that it is difficult to manage using traditional database management systems.

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Read-Only Memory, a type of non-volatile storage that is used in computers and electronic devices to store firmware or application software in a way that is not easily or frequently altered.

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