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.please help Which of the following statements is true as a result of the lump-sum tax? Check all that apply.O Marginal cost will increase.O Average fixed cost will increase.O Average variable cost will remain unchanged.O Average total cost will increase.Which of the following statements is true as a result of the per-burger tax? Check all that apply.O Average variable cost will increase.O Average total cost will increase.O Marginal cost will remain unchanged.O Average fixed cost will remain unchanged.

Taxes are part of the government revenue and it will implement in various forms.

Answered: The city government is considering two…

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. please help

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Lump-Sum Tax

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.

please help

Which of the following statements is true as a result of the lump-sum tax? Check all that apply.
O Marginal cost will increase.
O Average fixed cost will increase.
O Average variable cost will remain unchanged.
O Average total cost will increase.
Which of the following statements is true as a result of the per-burger tax? Check all that apply.
O Average variable cost will increase.
O Average total cost will increase.
O Marginal cost will remain unchanged.
O Average fixed cost will remain unchanged.

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