On Necessities, More of the Incidence of Tax Is

question 150

Multiple Choice

On necessities, more of the incidence of tax is

• A)borne by the producer.
• B)borne by the consumer.
• C)shared equally between the producer and the consumer.
• D)None of the above is correct.

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Definitions:

Long-Run Average Cost Curve

A graphical representation that shows the minimum average cost at which any output level can be produced after all inputs are adjustable. It reflects economies and diseconomies of scale.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, leading to a reduced cost per unit of output.

Search Engine

A software system designed to search for information on the World Wide Web.

Long-Run Cost

Costs that a firm incurs when all factors of production and costs are variable, not fixed, in the long term.