EBK STUDY GUIDE FOR MANKIW'S PRINCIPLES
7th Edition
ISBN: 9781337509848
Author: Mankiw
Publisher: VST
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Chapter 13, Problem 8PA
Subpart (a):
To determine
A fixed cost, average fixed cost, average total cost and average variable cost .
Subpart (b):
To determine
A fixed cost, average fixed cost, average total cost and average variable cost.
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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. a. Which of the following curves—average fixed cost, average variable cost, average total cost, and marginal cost—would shift as a result of the lump-sum tax? Why? Show this in a graph. Label the graph as precisely as possible. b. Which of these same four curves would shift as a result of the per-burger tax? Why? Show this in a new graph. Label the graph as precisely as possible.
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.
Marginal cost will remain unchanged.
Average total cost will increase.
O Average fixed cost will decrease.
O Average variable 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 remain unchanged.
Marginal cost will increase.
O Average variable 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.
оооо
Marginal cost will decrease.
Average total cost will remain unchanged.
Average fixed cost will increase.
Average variable cost will remain unchanged.
Chapter 13 Solutions
EBK STUDY GUIDE FOR MANKIW'S PRINCIPLES
Ch. 13.1 - Prob. 1QQCh. 13.2 - Prob. 2QQCh. 13.3 - Prob. 3QQCh. 13.4 - Prob. 4QQCh. 13 - Prob. 1CQQCh. 13 - Prob. 2CQQCh. 13 - Prob. 3CQQCh. 13 - Prob. 4CQQCh. 13 - Prob. 5CQQCh. 13 - Prob. 6CQQ
Ch. 13 - Prob. 1QRCh. 13 - Prob. 2QRCh. 13 - Prob. 3QRCh. 13 - Prob. 4QRCh. 13 - Prob. 5QRCh. 13 - Prob. 6QRCh. 13 - Prob. 7QRCh. 13 - Prob. 8QRCh. 13 - Prob. 1PACh. 13 - Prob. 2PACh. 13 - Prob. 3PACh. 13 - Prob. 4PACh. 13 - Prob. 5PACh. 13 - Prob. 6PACh. 13 - Prob. 7PACh. 13 - Prob. 8PACh. 13 - Prob. 9PACh. 13 - Prob. 10PA
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