This article will help you to learn about the difference between short period and long period. Difference between Short Period and Long Period We often draw a distinction between the short run and the long run. We do not define the short run with respect to any calendar period (one year, one month, one week, etc.). Rather the short run [...]
In this article we will discuss about the effects of excise taxes in a competitive industry. Excise taxes, also known as commodity taxes, are imposed on the production of commodities generally on a per unit basis. The tax is paid to the government by the producer rather than the buyer. (But this will not change in any way the effects [...]
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) [...]