--%>

Question on sales tax-subsidy policy with balanced budget

Considering that all firms have identical constant long-run average costs before the sales tax-subsidy policy, what do you assume to happen to the price of product, the output of every firms, and industry output, in the short run & the long run? (Hint: How does price associate to industry input?) Can such policy always be obtained with balanced budget where in tax revenues are equal to subsidy payments? Why?Clarify .

As the polluters exit and non-polluters enter the industry, revenues from polluters drop and the subsidy to the non-polluters raise. This imbalance takes place while the first polluter leaves the industry and persists ever after.

 

   Related Questions in Biology

  • Q : Microbiology Need tutor to assist me

    Need tutor to assist me with this subject especially critical thinking essays.

  • Q : Stereotypes - Barriers to Diversity -

    Set of beliefs about a group that is applied universally to all members of that group, such as 'all poor people are uneducated' or all Asians are good at math. Stereotyping, whether positive or negative, is not good because seldom does one statement hold true for all members of a group.

  • Q : Define Local National Local National :

    Local National: It is an up and coming new business chance for people who want to manage their lives by working for themselves and making a business to suit their way of life. Local National has made a series of we

  • Q : Describe the water cycle Explain the

    Explain the water cycle? Describe in detail.

  • Q : Introduction of the term Therapeutic

    Give a brief introduction of the term ‘Therapeutic cloning’?

  • Q : Explain the term salivary digestive

    Explain the term salivary digestive enzyme? Which kind of food does it digest and into which smaller molecules does it convert the food?

  • Q : Define the term cytoplasmic inclusions

    Define the term cytoplasmic inclusions?

  • Q : Differences between the signaling

    What are the similarities and differences  between the  signaling arrays and responses that are driven and associated with the “Jasmontates” in plants, and the “eicosanoids”; arachidonic acid cascade components in animals?  This is a large enough question th

  • Q : Concerning solubility how are lipids

    Concerning solubility, how are lipids categorized?

  • Q : Aerobic respiration in krebs cycle

    Until the Krebs cycle, aerobic respiration can be explained devoid of mentioning oxygen, the chemical element subsequent to which the reaction gets its name. Where in the procedure does this chemical element take part? What is its significance?