Business, 16.04.2020 01:32 natachalebrun2

If a firm is currently in a short-run equilibrium earning a profit, what impact will a lump-sum tax have on its production decision? A. The firm will not change output and earn a higher profit. B. The firm will decrease output to earn a higher profit. C. The firm will not change output but earn a lower profit. D. The firm will increase output but earn a lower profit. If a firm is currently in a short-run equilibrium earning a profit, what impact will an increase in variable factor prices have on its production decision? A. The firm will decrease output to earn a higher profit. B. The firm will not change output but earn a lower profit. C. The firm will not change output and earn a higher profit. D. The firm will decrease output and earn a lower profit.

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If a firm is currently in a short-run equilibrium earning a profit, what impact will a lump-sum tax...