Economy, asked by asifgenetically, 3 months ago

If a unit tax is imposed how does impact the short run supply curve of a firm

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Answered by farhan6478

Answer:

The firm's output falls from q1 to q2, and the impact of the tax is to shift the firm's short-run supply curve upward, ... Now suppose an output tax is placed on all firms in a competitive market which will shift the short-run supply curve for the industry upward by the amount of the tax.

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