Problem
The value-added tax system requires all goods to be sold at a price that includes tax. Any firm purchasing a good to use as an input can reclaim the tax it has paid. Assess this tax structure using the Diamond-Merles Production Exigency Lemma.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.