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. Average fixed cost will decrease. 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. Average variable cost will increase. Average fixed cost will decrease.
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. Average fixed cost will decrease. 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. Average variable cost will increase. Average fixed cost will decrease.
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 3CQQ
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![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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc751d6fd-d17c-47be-b3d8-6ae0f9d95edf%2Fe2f6279a-1c2f-4408-a840-9fab1ba85db9%2F3heh34_processed.png&w=3840&q=75)
Transcribed Image Text: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.
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