Question 3 ment passes an operating tax in a constant-cost, competitive industry. The tax requires each firm pays a fixed annual fee of F dollars. Suppose that the introduction of the tax does not change the mumber of firms producing in the short run. Total equilibrium output and price are unaffected in the short run, but the equilibrium price in the industry increases in the long run. True, False, Uncertain? [Explain your answer.] The govern-
Question 3 ment passes an operating tax in a constant-cost, competitive industry. The tax requires each firm pays a fixed annual fee of F dollars. Suppose that the introduction of the tax does not change the mumber of firms producing in the short run. Total equilibrium output and price are unaffected in the short run, but the equilibrium price in the industry increases in the long run. True, False, Uncertain? [Explain your answer.] The govern-
Chapter1: Making Economics Decisions
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ment passes an operatıng tax in a constant-cost, competitive industry. The tax requires each
firm pays a fixed annual fee of F dollars. Suppose that the introduction of the tax does not
change the number of firms producing in the short run. Total equilibrium output and price are
unaffected in the short run, but the equilibrium price in the industry increases in the long run.
True, False, Uncertain? [Explain your answer.] The govern-](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff76dba93-23d2-47f1-b92c-ad2c0bf14e16%2F6e085af2-5b2a-47e4-8451-d0e0f39ebc5d%2F8c8m8b4_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Question 3
ment passes an operatıng tax in a constant-cost, competitive industry. The tax requires each
firm pays a fixed annual fee of F dollars. Suppose that the introduction of the tax does not
change the number of firms producing in the short run. Total equilibrium output and price are
unaffected in the short run, but the equilibrium price in the industry increases in the long run.
True, False, Uncertain? [Explain your answer.] The govern-
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