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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 $1 Per burger, paid by producers of hamburger.

A. which is 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 raph as precisely as possible.

B. which of these same curve would shift as a result of the per-burger tax? why ? show this in a new graph. label the graph as precisely as possible.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M940836

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