Which of the following statements is true as a result of the lump-sum tax? Check all that apply. Average total cost will increase. Marginal cost will increase. Average variable cost will remain unchanged. Average fixed cost will increase. Which of the following statements is true as a result of the per-burger tax? Check all that apply. Average total cost will increase. Average variable cost will increase.
Which of the following statements is true as a result of the lump-sum tax? Check all that apply. Average total cost will increase. Marginal cost will increase. Average variable cost will remain unchanged. Average fixed cost will increase. Which of the following statements is true as a result of the per-burger tax? Check all that apply. Average total cost will increase. Average variable cost will increase.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter7: Production, Costs, And Industry Structure
Section: Chapter Questions
Problem 4SCQ: Based on your answers to the WipeOut Ski Company in Exercise 7.3, now imagine a situation where the...
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![The city govermment 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 total cost will increase.
O Marginal cost will increase.
O Average variable cost will remain unchanged.
O Average fixed cost will increase.
Which of the following statements is true as a result of the per-burger tax? Check all that apply.
OAverage total cost will increase.
O Average variable cost will increase.
O Average fixed cost will remain unchanged.
O Marginal cost will remain unchanged.
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Transcribed Image Text:The city govermment 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 total cost will increase.
O Marginal cost will increase.
O Average variable cost will remain unchanged.
O Average fixed cost will increase.
Which of the following statements is true as a result of the per-burger tax? Check all that apply.
OAverage total cost will increase.
O Average variable cost will increase.
O Average fixed cost will remain unchanged.
O Marginal cost will remain unchanged.
52°F Mostly cloudy
Cop
441
DI
&
8.
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