If the government levies a $1 excise tax on each unit of a good sold, what will happen to the producer's cost curve?
a. The average total cost and marginal cost curves will shift downward by the amount of the tax.
b. The average total cost and marginal cost curves will shift upward by the amount of the tax.
c. The marginal cost curve will shift upward by the amount of the tax; the average total cost curve will remain unchanged.
d. Both the marginal cost and average total costs will remain the same since taxes are not a cost of production.
B
You might also like to view...
Which of the following will not affect the size of a nation's physical or human capital stock?
a. A new factory is constructed b. A new machine is installed in company's plant. c. An eighteen-year-old enrolls in college as a full-time student. d. All of the above affect the size of a nation's capital stock.
Capital refers to
A. manufactured goods used to produce other goods or services. B. the work and time for which employees are paid. C. natural resources as well as "man"-made goods. D. the person who assembles the needed resources to start a business.
When you deposit funds in a bank and then the bank lends these funds to a borrower, the bank is engaged in
A. universal banking. B. financial intermediation. C. fiduciary investment. D. fraudulent behavior.
When shirking at the workplace occurs, increased monitoring of workers is the only effective way to reduce this behavior
Indicate whether the statement is true or false