Answer to Question #241420 in Microeconomics for Nana

Question #241420

How does a competitive firm adjust its demand for Labour when the government imposes a specific tax of τ on each unit of output?


1
Expert's answer
2021-09-23T17:36:30-0400

Tax will discourage employers from hiring. They unemployed are also discouraged to look for a job, because there are few incentive. As a result, those in employment are required to work longer or harder.




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