The competitive market equilibrium is at point C. If a per unit excise tax is imposed on the production of this good, the revenue collected by the government is

The competitive market equilibrium is at point C. If a per unit excise tax is imposed on the production of this good, the revenue collected by the government is Correct Answer the area BADH.

B Revenue collected by the government is equal to the per unit tax multiplied by the new quantity. The vertical distance between supply curves is the tax.
Bissoy MCQ

Related Questions

"It is now expected that the variable production cost per unit and the selling price per unit will each increase by 10%, and fixed production cost will rise by 25%. What will be the new break even point?
Selling price - Rs 6 per unit
Variable production cost - Rs 1.20 per unit
Variable selling cost - Rs 0.40 per unit
Fixed production cost - Rs 4 per unit
Fixed selling cost - Rs 0.80 per unit
Budgeted production and sales for the year are 10,000 units."
Which of the following components are true about tax planning?
1. Tax planning is the process of analyzing a financial plan or a situation from a tax perspective.
2. The objective of tax planning is to make sure there is tax efficiency. With the help of tax planning, one can ensure that all elements of a financial plan can function together with maximum tax-efficiency.
3. Reducing tax liability and increasing the ability to make contributions towards retirement plans are critical for success.
4. Tax planning comprises various considerations such as size, the timing of income, timing of purchases, and planning are concerned with other kinds of expenditures.
5. The chosen investments and the various retirement plans should go hand-in-hand with the tax filing status as well as the deductions in order to create the best possible outcome.
The competitive market equilibrium is at point C. If a per unit excise tax is imposed on the production of this good, the deadweight loss is
Good X is exchanged in a competitive market. Which of the following is true if an excise tax is now imposed on the production of good X?
Marginal cost is equal to marginal revenue, average cost is equal to average revenue, average revenue is equal to marginal revenue and average cost is equal to marginal cost. This is the condition of
1. long period equilibrium for a firm under monopoly
2. short period equilibrium for a firm under oligopoly
3. long period equilibrium
4. long period equilibrium for a firm under perfect competitions
Select the correct answer
The marginal cost is equal is to marginal revenue, the average cost is equal to average revenue, average revenue is equal to marginal revenue, and the average cost is equal to marginal cost. This is the condition of
1. Long-period equilibrium for a firm under monopoly.
2. Short-period equilibrium for a firm under oligopoly.
3. Long-period equilibrium
4. Long-period equilibrium for a firm under perfect competition.
Assertion (A): Revenue from indirect taxes was the major source of tax revenue till tax reforms were taken during nineties.
Reason (R): Traditionally India's tax regime relied heavily on indirect taxes including customs and excise.
Consider the given statements as true and decide which of the given conclusions can definitely be drawn from the given statements. Statements : People think that paying tax to the government is a burden and waste. Hence, they avoid paying tax or don't pay tax promptly. Conclusions : 1. Government should create awareness among the people that paying tax helps to build nation. 2. Tax should be increased so that more money is collected.
"What is the company's breakeven point:
Selling price - Rs 6 per unit
Variable production cost - Rs 1.20 per unit
Variable selling cost - Rs 0.40 per unit
Fixed production cost - Rs 4 per unit
Fixed selling cost - Rs 0.80 per unit
Budgeted production and sales for the year are 10,000 units."
If in a purely competitive market with downward-sloping demand and upward sloping supply curves, a specific excise tax per unit of output is imposed, then