Basic microeconomics concepts
In the competitive industry, reduction in property tax rate on fixed capital (plant) would reduce the fixed cost of all firms. This would have the following short-run effects on P, Q, and q respectively.
A) Fall, Rise, Rise B)Fall Fall Rise
C) Rise, Rise, Rise D) No change in any
E) Fall, Fall, Fall
In a perfectly competitive market, the question facing the individual firm is
a. how much to produce. b. what price to charge.
b. how much to produce and what price to charge. d. how to differentiate its product.
c. as a price searcher, to emulate its competitor’s pricing strategy.
