Whether each of the following is a characteristic of perfect competition , monopolistic competition , oligopoly, and/or monopoly : A large number of sellers Product is a commodity Advertising by firms Barriers to entry Firms are price makers Concept Introduction : Perfect Competition : Perfect Competition describes a market structure in which the number of buyers and sellers is very large, and the competition among sellers is at its greatest possible level. Monopolistic Competition : Monopolistic competition is a type of competition where producers offer products that are differentiated from one another (e.g. by quality). Oligopoly : Oligopoly refers to a market which is dominated by a small number of large sellers (oligopolists). Oligopoly has its own market structure. Monopoly : Monopoly refers to a market structure where there is a single seller who is engaged in selling a unique product in the market.

Question

Discuss the preferred deterrent method employed by the Zambian government to combat tax evasion, monetary fines. As noted in the reading the potential penalty for corporate tax evasion is a fine of 52.5% of the amount evaded plus interest assessed at 5% annually along with a possibility of jail time. In general, monetary fines as a deterrent are preferred to blacklisting of company directors, revoking business operation licenses, or calling for prison sentences. Do you agree with this preference? Should companies that are guilty of tax evasion face something more severe than a monetary fine? Something less severe? Should the fine and interest amount be set at a different rate? If so at why? Provide support and rationale for your responses.

Answer 1

Question

Chapter 10, Problem 12P

To determine

Whether each of the following is a characteristic of perfect competition, monopolistic competition, oligopoly, and/or monopoly:

A large number of sellers

Product is a commodity

Advertising by firms

Barriers to entry

Firms are price makers

Concept Introduction:

Perfect Competition: Perfect Competition describes a market structure in which the number of buyers and sellers is very large, and the competition among sellers is at its greatest possible level.

Monopolistic Competition: Monopolistic competition is a type of competition where producers offer products that are differentiated from one another (e.g. by quality).

Oligopoly: Oligopoly refers to a market which is dominated by a small number of large sellers (oligopolists). Oligopoly has its own market structure.

Monopoly: Monopoly refers to a market structure where there is a single seller who is engaged in selling a unique product in the market.

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Discuss the preferred deterrent method employed by the Zambian government to combat tax evasion, monetary fines. As noted in the reading the potential penalty for corporate tax evasion is a fine of 52.5% of the amount evaded plus interest assessed at 5% annually along with a possibility of jail time. In general, monetary fines as a deterrent are preferred to blacklisting of company directors, revoking business operation licenses, or calling for prison sentences. Do you agree with this preference? Should companies that are guilty of tax evasion face something more severe than a monetary fine? Something less severe? Should the fine and interest amount be set at a different rate? If so at why? Provide support and rationale for your responses.

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Discuss the preferred deterrent method employed by the Zambian government to combat tax evasion, monetary fines. As noted in the reading the potential penalty for corporate tax evasion is a fine of 52.5% of the amount evaded plus interest assessed at 5% annually along with a possibility of jail time. In general, monetary fines as a deterrent are preferred to blacklisting of company directors, revoking business operation licenses, or calling for prison sentences. Do you agree with this preference? Should companies that are guilty of tax evasion face something more severe than a monetary fine? Something less severe? Should the fine and interest amount be set at a different rate? If so at why? Provide support and rationale for your responses.