Answer to Question #48827 in Microeconomics for Lisa

Question #48827
Assume a perfectly competitive industry where the firms are identical, each with U-shaped short run and long run average cost curves. In the short run, consumers bear none of the burden of a “per firm” tax, while in the long run, consumers bear the entire burden. True or false.
Expert's answer
This is said to be true because mostly during the short run a firm normally incures more costs in advertising the products and reducing the price of goods to attract demand, hence low prices to consumers shows that they dont bear tax.
So, the statement is true.

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!


No comments. Be first!

Leave a comment

Ask Your question

New on Blog