A fixed cost, average fixed cost, average total cost and average variable cost .

Question

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.

Answer 1

Question

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. 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? 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?

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