6. Calculating tax incidence Suppose that the U. S. government decides to charge cola producers a tax. Before the tax, 20,000 cases of cola were sold every week at a price of $4 per case. After the tax, 13,000 cases of cola are sold every week; consumers pay $7 per case, and producers receive $2 per case (after paying the tax). The amount of the tax on a case of cola isper case. Of this amount, the burden that falls on consumers isper case, and the burden that falls on producers isper case. True or False: The effect of the tax on the quantity sold would have been smaller if the tax had been levied on consumers. True False

Garrett is an executive vice president at samm hardware. he researches a proposal by a larger company, maximum hardware, to combine the two companies. by analyzing past performance, conducting focus groups, and interviewing maximum employees, garrett concludes that maximum has poor profit margins, sells shoddy merchandise, and treats customers poorly. what actions should garrett and samm hardware take? a. turn down the acquisition offer and prepare to resist a hostile takeover. b. attempt a friendly merger and use managerial hubris to improve results at maximum. c. welcome the acquisition and use knowledge transfer to impart sam hardware's management practices. d. do nothing; the two companies cannot combine without samm hardware's explicit consent.