The Figure Below Shows the Relationship Between Cost Per Unit

question 204

Essay

The figure below shows the relationship between cost per unit and the number of firms producing a particular good. The downward shift in the curve from A to B is best explained by a(n)
a.
increase in the number of firms in the market.
b.
increase in market size.
c.
decrease in the number of firms in the market.
d.
increase in market price.
e.
decrease in the market size.

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Definitions:

Federal Income Tax

A charge imposed by the federal government of the United States on the yearly income of individuals, corporations, trusts, and various legal bodies.

Social Security Tax

Social security tax is a tax levied by the government to fund social security programs, typically deducted from an employee's paycheck and also matched by employers.

Medicare Tax

A federal tax that funds Medicare, a health care program for individuals who are 65 years and older or meet other specific criteria, deducted from employee wages with an employer match.

Social Security Tax Rate

The rate at which income is taxed to fund the Social Security program, typically shared between employees and employers.