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

As a result of lumpsum tax-Average total cost will increaseAverage fixed cost will increase As a…

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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Business Selling Price Total Sold Cost of Goods Sold Sales Profit First Aid Kits 28.95 25 400 723.75 323.75 Leg Casts 50 10 300 500 200 Rubbing Liniment 12 5 5 60 55 Resuscitators 70 2 130 140 10 Sun Burn Ointment 25 25 1000 625 -375 Question #1 Economists are always calculating the costs and the benefits of alternatives. Economic profit, as distinct from the accounting profit you calculated in question 1, is the additional profit that is earned by choosing the best, rather than the second best, profit opportunity. Profit maximizers should always calculate economic as well as accounting profit. What is the economic profit you would receive if you decided to purchase the business's best profit maker?
I'm not sure if I answered these questions correctly.
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. Marginal cost will remain unchanged. Average total cost will increase. O Average fixed cost will decrease. O Average variable cost will increase. 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. O Average variable cost will increase. Average fixed cost will decrease.
Question 15 (i) Which of the following is(are) correct about how accountants and economists consider costs? Accountants consider only implicit costs Economists consider both explicit and implicit costs A: 1 only B: 2 only C: Both 1 and 2 D: Neither 1 nor 2 (ii) Which of the following statements is(are) correct for a monopoly firm and a competitive firm? Both firms earn economic profit in the long run. Both firms aim to maximize profit and produce at P = MC. A: 1 only B: 2 only C: Both 1 and 2 D: Neither 1 nor 2
A market's deadweight loss is calculated as: O the economic loss that a firm has when it is not producing its profit-maximizing output. O the price at equilibrium minus the price at actual quantity. the total economic surplus at the efficient quantity minus the total economic surplus at the actual quantity. the loss to consumers when a product malfunctions or fails to meet expectations.
2
: 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?
Do you think profit could be maintained if the tax burden were simply passed on to the consumers in the form of higher selling price? How will this affect sales? Explain.
feedback and control system Explain how the economic concept known as "supply of law and demand" can be interpreted as a feedback control system. Take the example of the soaring price of fuel in the market today
c) Instead of introducing the 20% corporate tax in part (b), the government decided to add an ad valorem input tax of 100% to input 2. What is the profit-maximizing amount of each input to use? What is the profit-maximizing output? How much is Rodrigo’s new profit?
What happens to the amount of consumer surplus and producer surplus when the supply of scarves suddenly declines (shifts left)? Group of answer choices Consumer surplus is unchanged and producer surplus is unchanged. Consumer surplus declines and producer surplus is unchanged. Producer surplus increases and consumer surplus increases. Producer surplus declines and consumer surplus is unchanged. Consumer surplus declines and producer surplus declines.
1) See picture to solve

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