Maria and Tony Are Married

question 118

Essay

Maria and Tony are married.They are preparing to file their 2019 tax return.If they were to file as single taxpayers, Maria and Tony would report $40,000 and $60,000 of taxable income, respectively.On their joint tax return, their taxable income is $100,000.How much of a marriage penalty or benefit will Maria and Tony experience in 2019? (Use Tax rate schedules.)

Understand the conditions for long-run economic profit or loss in price-taker markets.

Assess the minimum price a firm would need to charge to cover its average total cost in the long run.

Distinguish between price searchers and price takers.

Evaluate the effect of market entry or exit on market supply, price and firm profitability.