Glen Eira City Council wants to impose a tax to fish and chips shops. It is considering two types of tax: -  a lump sum of 500$ on each fish and chips owner -  a tax of 2$ per kg of fish and chips sold, paid by each fish and chips owner (a)  Which cost curve would shift as a consequence of each type of tax? (AFC, AVC,

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Glen Eira City Council wants to impose a tax to fish and chips shops. It is considering two types of tax:
-  a lump sum of 500$ on each fish and chips owner
-  a tax of 2$ per kg of fish and chips sold, paid by each fish and chips owner
(a)  Which cost curve would shift as a consequence of each type of tax? (AFC, AVC,

(b) Consider the following table of long-run total cost for three different fish and
ATC, MC)? 

Quantity
1234567
Happy squid
20
30
40
50
60
70
80
Juicy Prawns
EFEKTBE
11
24
39
56
75
96
119
Magic swordfish
21
34
49
66
85
106
129
Transcribed Image Text:Quantity 1234567 Happy squid 20 30 40 50 60 70 80 Juicy Prawns EFEKTBE 11 24 39 56 75 96 119 Magic swordfish 21 34 49 66 85 106 129
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