Question: a tariff is an example of a market structure tax...
Question details
A tariff is a(n)
| example of a market structure. |
| tax on domestically produced and sold products. |
| natural barrier to entry. |
| way to promote competition. |
|
tax on an import. |
Use the following scenario to answer the following questions:
Carmela’s Churros is a perfectly competitive firm that sells
desserts in Houston, Texas. Carmela’s Churros currently is taking
in $40,000 in revenues, and has $15,000 in explicit costs and
$25,000 in implicit costs.
Carmela’s Churros’ accounting profits are
| $25,000. |
| $80,000. |
| $15,000. |
| $40,000. |
| $0. |
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