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The effects of a tax depend on elasticity of demand. Inelasticity of demand will allow producers to shift the tax burden to consumers. The cost of production still the same. But in the case of elastic, producers might pay part or all tax by themself without raising the price. It will effect...

In a perfectly competitive market, this producer will lose the profit margin in the short run, and might have to go out of the market in the long run. Price is set by the market. Producers cannot raise price. But in the case of monopolist, when cost rises, the monopolist will raise price.

In a perfectly competitive market, this producer will lose the profit margin in the short run, and might have to go out of the market in the long run. Price is set by the market. Producers cannot raise price. But in the case of monopolist, when cost rises, the monopolist will raise price.

In a perfectly competitive market, this producer will lose the profit margin in the short run, and might have to go out of the market in the long run. Price is set by the market. Producers cannot raise price. But in the case of monopolist, when cost rises, the monopolist will raise price.

In a perfectly competitive market, this producer will lose the profit margin in the short run, and might have to go out of the market in the long run. Price is set by the market. Producers cannot raise price. But in the case of monopolist, when cost rises, the monopolist will raise price.

The answer is clearly C.

The answer is clearly B.