When firm must pay a tax proportional to the number of items it produces: fixed cost of production will [increase, decrease, remain the same] , marginal cost of production will ["", "", ""] , average cost of production will

When firm must pay a tax proportional to the number of items it produces: fixed cost of production will [increase, decrease, remain the same] , marginal cost of production will ["", "", ""] , average cost of production will

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter6: Elasticity

Section6.4: The Relationship Between Taxes And Elasticity

Problem 4ST

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When firm must pay a tax proportional to the number of items it produces:
- fixed cost of production will [increase, decrease, remain the same] ,
- marginal cost of production will ["", "", ""] ,
- average cost of production will ["", "", ""] .

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