Microeconomics (Christopher T.S. Ragan) (z-lib.org)

As we saw in Chapter 7 , there are two different measures of a firm’s profit—accounting profit and economic profit. Accounting p ...

The Importance of Entry Barriers Suppose firms in an oligopolistic industry succeed in raising prices above long-run average cos ...

CHI faces a 30 percent corporate tax that applies to its economic profits of $400 000, it will pay $120 000 in corporate taxes, ...

Although such brand proliferation is no doubt partly a response to consumers’ preferences, it can also have the effect of discou ...

will pay $450 000 in corporate taxes. CHI’s after-tax accounting profits will now be $1.05 million. But the presence of the corp ...

In addition to producing useful information about existing products, advertising can operate as a powerful entry barrier by incr ...

A large body of economic research suggests that the biggest burden of a corporate income tax applied to accounting profits is on ...

Advertising can be very informative for consumers. But by raising the costs of new entrants, advertising can also act as a power ...

Taxes on Expenditure As we first saw in Chapter 4 , an excise tax is a tax levied on a particular good or service. In many count ...

Oligopoly and the Economy Oligopoly is found in many industries and in all advanced economies. It often occurs in industries wit ...

Figure 18-1 The Operation of a GST of 5% With the notable exception of the United States, most developed economies levy a tax si ...

insofar as entry is restricted either by natural barriers, such as large minimum efficient scales for potential entrants, or by ...

steel maker, the steel then sold to an appliance manufacturer, and the washing machine sold to a retailer and then to a consumer ...

They argue that the oligopolist faces strong competition from existing rivals and cannot afford the more relaxed life of the mon ...

Taxing the value of existing property creates two problems. First, someone has to assess the current market value of the propert ...

Summary ...

18.2 Evaluating the Tax System We have described several individual taxes in Canada, and in each case noted the tax’s possible e ...

11.1 Imperfect Competition LO 1, 2 Most industries in the Canadian economy lie between the two extremes of monopoly and perfect ...

The Ability-to-Pay Principle Most people view an equitable tax system as being based on people’s ability to pay taxes. In consid ...

11.2 Monopolistic Competition LO 3 Monopolistic competition is a market structure that has the same characteristics as perfect c ...