Glen Eira City Council wants to impose a tax to fish and chips shops. It is considering two types of tax: - a lump sum of 500$ on each fish and chips owner - a tax of 2$ per kg of fish and chips sold, paid by each fish and chips owner (a) Which cost curve would shift as a consequence of each type of tax? (AFC, AVC,
Glen Eira City Council wants to impose a tax to fish and chips shops. It is considering two types of tax: - a lump sum of 500$ on each fish and chips owner - a tax of 2$ per kg of fish and chips sold, paid by each fish and chips owner (a) Which cost curve would shift as a consequence of each type of tax? (AFC, AVC,
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Glen Eira City Council wants to impose a tax to fish and chips shops. It is considering two types of tax:
- a lump sum of 500$ on each fish and chips owner
- a tax of 2$ per kg of fish and chips sold, paid by each fish and chips owner
(a) Which cost curve would shift as a consequence of each type of tax? (AFC,
(b) Consider the following table of long-run total cost for three different fish and
ATC, MC)?
Transcribed Image Text:Quantity
1234567
Happy squid
20
30
40
50
60
70
80
Juicy Prawns
EFEKTBE
11
24
39
56
75
96
119
Magic swordfish
21
34
49
66
85
106
129
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