An Excise Tax Levied on Firms in a Constant-Cost Competitive

Multiple Choice

An excise tax levied on firms in a constant-cost competitive industry will:

A) increase output more in the short run than in the long run.
B) reduce output more in the long run than in the short run.
C) benefit consumers in the short run but harm them in the long run.
D) increase the product price more in the short run than in the long run.