Strong Government ControlGovernments have a lot of control over firms when it comes to taxes and subsidies as they are able to introduce one depending on how well the firm is operating within the market etc.
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Super TaxThe introduction of a super tax on a firm would be introduced if a firm was performing too well and the government felt that it need to be pulled back a little. By introducing a super tax, the government would be removing the incentive that was allowing the firm to operate so well, therefore causing it to slowly return to a state of normality, where other firms within the industry would be able to compete with the then overachieving firm.
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Introduction of SubsidyThe introduction of a subsidy can have both positive and negative results, based on where it is applied. For example, if a subsidy was introduced to an opposing firm within an industry, it would count as a negative as it would create an incentive for opposing firms to grow, leading to tougher competition. If a subsidy were to be applied to producers although, a positive would be experienced for the firm as both the producers and firm would more money, allowing more sales for consumers to be achieved.
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Indirect tax
Indirect tax can be imposed to intervene the quantity produced by a firm. The supply of the good is directly afffected by the tax. With a tax, the supply decreases, which makes the price increase. In most cases, the tax burden is transferred onto the consumers, where consumers would have a lower purchasing power.