7. Lump-Sum TaxThe 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.Average total cost will increase.Average fixed cost will increase.Marginal 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.Average fixed cost will increase.Marginal cost will remain unchanged.

As a result of lumpsum tax-Average total cost will increaseAverage fixed cost will increase As a…

Answered: 7. Lump-Sum Tax The city government is…

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Cost Of Production

Section: Chapter Questions

Problem 8PA

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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. 52°F Mostly cloudy Cop 441 DI & 8.
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. оооо Marginal cost will decrease. Average total cost will remain unchanged. Average fixed cost will increase. Average variable cost will remain unchanged.
The local government in Karachi is considering two tax proposals: A lump-sum tax of Rs. 300 on each producer of Ice-cream. A tax of Rs. 1 per unit of Ice-cream, paid by producers of Ice-cream. Which cost curves; average fixed cost, the average variable cost, average total cost, and marginal cost would shift as a result of the lump-sum tax? Why? 2.Which cost curves; average fixed cost, the average variable cost, average total cost, and marginal cost would shift as a result of the per-unit tax? Why?
How does tax affect a firm's fixed, marginal and average costs? 1. When firm must pay lump sum tax (which is a fixed sum, independent of whether it produces any output): • fixed cost of production will remain the same • marginal cost of production will increase · average cost of production will increase 2. When firm must pay a tax proportional to the number of items it produces: • fixed cost of production will [Select ] • marginal cost of production will [ Select] · average cost of production will [ Select ]
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.
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 total cost will increase. Marginal cost will remain unchanged. Average variable cost will increase. Which of the following statements is true as a result of the per-burger tax? Check all that apply. 0 Average fixed cost will remain unchanged. Marginal cost will remain unchanged. Average total 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 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.
The city government is considering two tax proposals: • A lump-sum tax of $300 on each producer of hamburgers. • 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 increase. Average fixed cost will increase. Average variable cost will remain unchanged. Average total cost will increase. Which of the following statements is true as a result of the per-burger tax? Check all that apply. Average fixed cost will increase. Marginal cost will remain unchanged. Average variable cost will increase. Average total cost will increase.
KK Enterprises' average total cost curve (ATC) has shifted up, but its average variable cost curve (AVC) and marginal cost curve (MC) haven't changed. Which of the following would cause the change in ATC, but not affect AVC or MC ? Select one: O a. a tax on a variable cost of production O b. an improvement in productivity Ос. a decline in productivity O d. a tax on a fixed cost of production
a. A firm faces the following average revenue (demand) curve:P = 120 − 0.02Qwhere Q is weekly production and P is price, measured in cents per unit. The firm’s cost function is given by C = 60Q + 25,000. Assume that the firm maximizes profits. i. What is the level of production, price, and total profit per week?ii. If the government decides to levy a tax of 14 cents per unit on this product, what will be the new level of production, price, and profit?

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