Which of the Following Affects Both the Marginal and Average

question 78

Multiple Choice

Which of the following affects both the marginal and average total cost curves of a firm in the short run?

• A)A change in profit taxes.
• B)A change in payroll taxes.
• C)A change in property taxes.
• D)A change in consumer income.

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Definitions:

Relatively Elastic

Describes a situation in which the quantity demanded of a good or service changes significantly due to a change in its price.

Time Interval

A specific duration or period between two points or events in time.

Substitutes

Substitutes are goods or services that can replace each other in usage, providing consumers with alternative choices when purchasing.

Price-Elastic

Descriptive of demand that is highly sensitive to changes in price, meaning a small price change can cause a significant change in the quantity demanded.