Saturday, November 19, 2011

Tax and Subsidy: Per Unit and Lump Sum

This video deals with the affects taxes or subsidies have on the firms in the different market structures.  Addressed here is the use of both per unit and lump sum taxes or subsidies with a few examples.  At home, please practice a per unit and lump sum tax and subsidy on each market structure (perfect competition, monopolistic competition, monopoly, and oligopoly).