Producers will lose no producer surplus due to a tax if supply in their market is perfectly elastic because:
consumers can effortlessly change their behavior in response to the tax.
firms will decide not to pay the tax to the government.
the government will decide to tax something else.
the amount of the tax is relatively low.
producers can effortlessly change their behavior in response to the tax.

Kando company incurs a $9 per unit cost for product a, which it currently manufactures and sells for $13.50 per unit. instead of manufacturing and selling this product, the company can purchase product b for $5 per unit and sell it for $12 per unit. if it does so, unit sales would remain unchanged and $5 of the $9 per unit costs assigned to product a would be eliminated. 1. prepare incremental cost analysis. should the company continue to manufacture product a or purchase product b for resale? (round your answers to 2 decimal places.)

Find a company that has followed a strong strategic direction- state that generic strategy and the back-up points to support your position.

Your uncle is considering investing in a new company that will produce high quality stereo speakers. the sales price would be set at 1.5 times the variable cost per unit; the variable cost per unit is estimated to be $75.00; and fixed costs are estimated at $1,200,000. what sales volume would be required to break even, i. e., to have ebit = zero?