An Excise Tax Levied on Firms in a Constant-Cost Competitive

question 64

Multiple Choice

An excise tax levied on firms in a constant-cost competitive industry will:

• A)increase output more in the short run than in the long run.
• B)reduce output more in the long run than in the short run.
• C)benefit consumers in the short run but harm them in the long run.
• D)increase the product price more in the short run than in the long run.

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Definitions:

Salt

A mineral composed primarily of sodium chloride (NaCl), used in food for flavoring and preservation, as well as in various industrial processes.

Reduction Of Edema

The process of decreasing swelling in the body's tissues by removing excess fluid.

Potassium Intake

The amount of potassium consumed through diet, essential for proper cell function and heart health.