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Ceteris Paribus, in the Long Run, a Tax Placed on a Perfectly

Question 25

Multiple Choice

Ceteris paribus, in the long run, a tax placed on a perfectly competitive industry will


A) increase the price of the good by an amount equal to the tax.
B) increase the price of the good by an amount less than the tax.
C) be borne entirely by the firm.
D) be entirely borne by the consumer.

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