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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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