In the case of a specific tax the resulting price received by producers depends on
A) who pays the tax.
B) the price elasticity of supply.
C) the price elasticity of demand.
D) All of the above.
D
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Which of the following statements is true?
A) Although consumers reap some consumer surplus under a single-price monopoly, society is better off with optimal two-part tariff pricing. B) Of the three pricing schedules, single-price monopoly, an optimal two-part tariff, and perfect price discrimination, profit is highest under single-price monopoly pricing. C) Consumer surplus under perfect price discrimination is greater than under single-price monopoly pricing. D) Consumer surplus under an optimal two-part tariff is greater than that under single-price monopoly pricing.
Discretionary economic policy is not beneficial in the ________
A) traditional Keynesian theory B) new Keynesian theory C) Luka Brazzi model D) real business cycle theory
To calculate the internal rate of return on a factory that would yield a perpetual future stream of income, one would divide
A) the annual future payment by the cost of the factory. B) the sum of the future payments by the cost of the factory. C) the cost of the factory by the rate of interest. D) the cost of the factory by the annual future payment.
For an oligopolistic firm, which of the following can be identified as a strategy?
A) Produce 10,000 units regardless of what the rivals do. B) Advertise if the rival advertises, do not advertise if the rival does not advertise. C) Raise the price if the rival raises the price, keep the current price if the rival lowers its price. D) All of above.