Explain the effects of taxation on the equilibrium of a firm, Taxation

Q. Explain the effects of taxation on the equilibrium of a firm?

Suppose a tax is imposed on the producers of a commodity, the tax is on each unit for they produce. Naturally, the producers wish they could pass the tax on to the consumers. The more elastic the demand, the less willing are the buyers to pay higher prices for smaller quantities. The more inelastic the supply, the greater is decline in marginal cost as output is cut back by the tax which is then added to a lower level of cost.

Posted Date: 8/13/2013 5:59:32 AM | Location : United States







Related Discussions:- Explain the effects of taxation on the equilibrium of a firm, Assignment Help, Ask Question on Explain the effects of taxation on the equilibrium of a firm, Get Answer, Expert's Help, Explain the effects of taxation on the equilibrium of a firm Discussions

Write discussion on Explain the effects of taxation on the equilibrium of a firm
Your posts are moderated
Related Questions
Donald, a 40-year-old married taxpayer, has a salary of $55,000 and interest income of $6,000. What is the maximum amount Donald can contribute to a Roth IRA?

Problems for Benchmark HW: There are issues here that were not covered in live lecture, but here are some issues that you need to be conscious of when attempting the problems. t

Thomas Crown expects to earn the following stream of annual income for the next four years:- $41,000; $45,000; $38,000 and $50,000. Although he has adopted the ‘Pay Yourself Firs

Wyoming Coal Company is interested in buying a machine for $40,000, which it will depreciate uniformly over a four-year period. An analysis of the life expectancy of such machines

i want some problems with solutions on karnataka value added tax 2003

Given the below facts, what is the total income effect for the year for an investor for its equity-method investment? T y pe of Investment: Equity Method

An expatriation tax is a tax on somebody who gives up their citizenship. In United States, the expatriation tax provisions under Section 877 and Section 877A of the Internal Revenu

Macy had a lot of medical expenses this year that were not covered by her insurance (either due to a deductible, co-insurance, or co-pay). Her un-reimbursed qualifying medical expe

Your firm  purchased a line of computer equipment for $1.5M  four  years ago.  It is assigned a CCA rate of 20% and the firm has a tax rate of 35%.  At the end of this year (year 4