b. Whet would Paducah's profit-maximizing level of output be if the government imposed a tax of $10 per day on the company? (Hint Think of this tax as equivalent to a $10 increase in fixed cost) bats c What would Paducah's profit maximizing level of output be if the government imposed a tax of $2 per bat instead of the $10 tax of part b? (Hint Think of this tax as a $2 per bat increase in the firm's marginal cost) bats d. Why do the taxes in parts b and chave such different effects? O A tax of $10 per day doesn't affect the firm's profit, while a tax of $2 per bat does. OA tax of $10 per day affects the firm's profit, while a tax of $2 per bat does not O A tax of $10 per day affects marginal cost, while a tax of $2 per bat does not O A tax of $10 per day does not affect marginal cost, while a tax of $2 per bat does
b. Whet would Paducah's profit-maximizing level of output be if the government imposed a tax of $10 per day on the company? (Hint Think of this tax as equivalent to a $10 increase in fixed cost) bats c What would Paducah's profit maximizing level of output be if the government imposed a tax of $2 per bat instead of the $10 tax of part b? (Hint Think of this tax as a $2 per bat increase in the firm's marginal cost) bats d. Why do the taxes in parts b and chave such different effects? O A tax of $10 per day doesn't affect the firm's profit, while a tax of $2 per bat does. OA tax of $10 per day affects the firm's profit, while a tax of $2 per bat does not O A tax of $10 per day affects marginal cost, while a tax of $2 per bat does not O A tax of $10 per day does not affect marginal cost, while a tax of $2 per bat does
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter12: The Cost Of Production
Section: Chapter Questions
Problem 4PA
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