Archive | Competitive Industry

Effects of Lump-Sum Taxes in a Competitive Industry

We shall try to know here the effects of the tax on a constant cost competitive industry in the short run and in the long run. The Short-Run Effects of the Tax: Let us suppose that the picture of a typical firm is given in part (a) of Fig. 12.3 and that of the industry is given in part (b) [...]

By Vanshika Ghosh|2016-09-17T15:56:10+05:30September 17, 2016|Competitive Industry|Comments Off

Effects of Ad Valorem Taxes (With Diagram)

In this article we will discuss about the effects of ad valorem taxes in a competitive industry. An ad valorem tax is a value-based tax. It is imposed as a fixed percentage of the price of a commodity. It is sometimes called a sales tax. We shall assume here that the tax is collected from the buyers rather than from [...]

By Vanshika Ghosh|2016-09-17T15:56:06+05:30September 17, 2016|Competitive Industry|Comments Off

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