The city government is considering two tax proposals:• A lump-sum tax of $300 on each producer of hamburgers.• A tax of $1 per burger, paid by producers of hamburgers.Which of the following statements is true as a result of the lump-sum tax? Check all that apply.Average variable cost will remain unchanged.Marginal cost will decrease.Average fixed cost will increase.Average total cost will remain unchanged.Which of the following statements is true as a result of the per-burger tax? Check all that apply.Average variable cost will increase.Average total cost will remain unchanged.Marginal cost will increase.Average fixed cost will decrease.

Lump- sum tax is the one time payment which is fixed in amount paid by the producers to the…

The city government is considering two tax proposals: • A lump-sum tax of $300 on each producer of hamburgers. • A tax of $1 per burger, paid by producers of hamburgers. Which of the following statements is true as a result of the lump-sum tax? Check all that apply. O Average variable cost will remain unchanged. Marginal cost will decrease. O Average fixed cost will increase. O Average total cost will remain unchanged. Which of the following statements is true as a result of the per-burger tax? Check all that apply. Average variable cost will increase. Average total cost will remain unchanged. Marginal cost will increase. Average fixed cost will decrease.

The city government is considering two tax proposals: • A lump-sum tax of $300 on each producer of hamburgers. • A tax of $1 per burger, paid by producers of hamburgers. Which of the following statements is true as a result of the lump-sum tax? Check all that apply. O Average variable cost will remain unchanged. Marginal cost will decrease. O Average fixed cost will increase. O Average total cost will remain unchanged. Which of the following statements is true as a result of the per-burger tax? Check all that apply. Average variable cost will increase. Average total cost will remain unchanged. Marginal cost will increase. Average fixed cost will decrease.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter21: Production And Costs

Section: Chapter Questions

Problem 16QP

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The city government is considering two tax proposals: • A lump-sum tax of $300 on each producer of hamburgers. • A tax of $1 per burger, paid by producers of hamburgers. Which of the following statements is true as a result of the lump-sum tax? Check all that apply. Average total cost will increase. Average fixed cost will increase. Marginal cost will increase. Average variable cost will remain unchanged. Which of the following statements is true as a result of the per-burger tax? Check all that apply. Average total cost will increase. Marginal cost will remain unchanged. Average fixed cost will increase. Average variable cost will increase.
The city government is considering two tax proposals: • A lump-sum tax of $300 on each producer of hamburgers. • A tax of $1 per burger, paid by producers of hamburgers. Which of the following statements is true as a result of the lump-sum tax? Check all that apply. Average fixed cost will decrease. Average variable cost will increase. Average total cost will increase. Marginal cost will remain unchanged. Which of the following statements is true as a result of the per-burger tax? Check all that apply. Average total cost will remain unchanged. Average fixed cost will decrease. Marginal cost will increase. Average variable cost will increase.
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