Question

1. A unit tax is a tax that the government imposes per unit sale of output for manufacturing
firm operating under perfect competition, what is the likely impact of a unit tax and its
supply?Explain.
(a) At any given market price, the firm will supply the same number of units of output
(b) Impact cannot be determined
(c) At any given market price, the firm will supply fewer units of output
(d) At any given market price, the firm will supply greater units of output​

Answer 1

Answer:

Answer A unit tax may be defined as the tax imposed by the government on per unit sale of output. The imposition of a unit tax shifts the marginal. cost curve of the firm upward Affect in supply curve will shift to the left. Question 16. How does an increase in the price of an input affect the supply curve of a firm