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.