Assume that you work for a large manufacturing company that utilizes both capital (K) and Labor...

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Economics

Assume that you work for a large manufacturing company thatutilizes both capital (K) and Labor (L) in the production process.Explain how a tax on capital would affect your operations and howyou would estimate the welfare effects on your company.
Many make the argument that although perfectly competitivemarkets achieve the highest level of social welfare, becausemarkets are never perfectly competitive, society is worse off fromusing market-based systems.

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Dear Student In following various ways capital Expenditures and Taxes implication can be explained Affect your operations Businesses usually prefer to take tax deductions for purchases of business assets currently rather than spread them out over time But the IRS has strict rules on what costs can be immediately expensed As noted above the See Answer

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