Please give me correct answer and full explanation Note:-Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism.Answer completely and accurate answer.Rest assured, you will receive an upvote if the answer is accurate. 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 fixed cost will increase.Marginal cost will increase.Average total 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 remain unchanged.Marginal cost will increase.Average fixed cost will decrease.Average variable cost will increase.

Lumpsum tax is one of the special forms of taxation that is based on a fixed amount. It does not get…

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

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Please give me correct answer and full explanation Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.

7. 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.
Which of the following statements is true as a result of the lump-sum tax? Check all that apply.
Average fixed cost will increase.
Marginal cost will increase.
Average total 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 remain unchanged.
Marginal cost will increase.
Average fixed cost will decrease.
Average variable cost will increase.

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