Taxes, Production, Costs, and Competition Flashcards
1
Q
What is excise tax
A
A per unit tax, placed on specific goods or services
2
Q
Tax incidence
A
Firms either pay part of the taxes themselves or push the tax cost onto consumers.
3
Q
How to find the tax
A
The bottom of the square to the top
4
Q
Producers pay…
A
bottom of the square to equilibrium
5
Q
consumers pay…
A
top of the square to equilibrium
6
Q
How to find the equilibrium price after the tax
A
Look at the new supply and find the intersection of the demand curve and the new supply curve
7
Q
.
A
.
8
Q
Total revenue
A
the area of the square
price x supply
9
Q
How to find tax revenue
A
amount of the bottom line to the top line x the quantity
10
Q
Stage 1
A
Increasing returns
11
Q
Stage 2
A
Diminishing returns
12
Q
Stage 3
A
Negative returns
13
Q
.
A
.
14
Q
Total cost
A
Variable cost+fixed cost
15
Q
.
A
.
