Megacola faces demand of q2200-20p its marginal costs are, Ask an Expert

Economics

Megacola faces demand of Q=2,200-20P. Its marginal costs are constant at $5 per unit. a. Show that Megacola will not change its behavior if the government introduces a 20% tax on its profits. b. Does the existence of firms such as Megacola strengthen or weaken the case for a corporate income tax? Explain.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91867135

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