In the long run the corporate income tax has no effect on the price of products produced by corporations.

Question

Quizplus · Accepted Answer

The corporate income tax can affect the price of products produced by corporations in the long run. If corporations are facing higher tax burden, their operating costs will increase, which could result in higher prices passed down to consumers to maintain profitability. However, the extent of the impact on the price of products depends on various factors such as competition, demand, and elasticity of the product.

In the Long Run the Corporate Income Tax Has No