Long run.

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Answer 1

Question

Chapter 9, Problem 1MC

To determine

Long run.

Expert Solution & Answer

Explanation of Solution

In the long run, firms produce according to the market situations. This would eliminate the excess demand or supply in the market. Hence, economic profit is eliminated in the long run and firms obtain normal profit (accounting profit). Thus, option ‘d’ is correct.

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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.

Answer 2

Question

Chapter 9, Problem 1MC

To determine

Long run.

Expert Solution & Answer

Explanation of Solution

In the long run, firms produce according to the market situations. This would eliminate the excess demand or supply in the market. Hence, economic profit is eliminated in the long run and firms obtain normal profit (accounting profit). Thus, option ‘d’ is correct.

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Answer 3

Question

Chapter 9, Problem 1MC

To determine

Long run.

Expert Solution & Answer

Explanation of Solution

In the long run, firms produce according to the market situations. This would eliminate the excess demand or supply in the market. Hence, economic profit is eliminated in the long run and firms obtain normal profit (accounting profit). Thus, option ‘d’ is correct.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 9, Problem 1MC

To determine

Long run.

Expert Solution & Answer

Explanation of Solution

In the long run, firms produce according to the market situations. This would eliminate the excess demand or supply in the market. Hence, economic profit is eliminated in the long run and firms obtain normal profit (accounting profit). Thus, option ‘d’ is correct.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 9, Problem 1MC

To determine

Long run.

Expert Solution & Answer

Explanation of Solution

In the long run, firms produce according to the market situations. This would eliminate the excess demand or supply in the market. Hence, economic profit is eliminated in the long run and firms obtain normal profit (accounting profit). Thus, option ‘d’ is correct.

Answer 6

Chapter 9, Problem 1MC

To determine

Long run.

Expert Solution & Answer

Explanation of Solution

In the long run, firms produce according to the market situations. This would eliminate the excess demand or supply in the market. Hence, economic profit is eliminated in the long run and firms obtain normal profit (accounting profit). Thus, option ‘d’ is correct.

Answer 7

Chapter 9, Problem 1MC

To determine

Long run.

Answer 8

Expert Solution & Answer

Explanation of Solution

In the long run, firms produce according to the market situations. This would eliminate the excess demand or supply in the market. Hence, economic profit is eliminated in the long run and firms obtain normal profit (accounting profit). Thus, option ‘d’ is correct.