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When estimating a short-run production function of the form , it is necessary to specify in the computer routine that
Taxable Income
Taxable income is the amount of income subject to tax, after all deductions and exemptions have been accounted for.
Average Tax Rate
the proportion of total income that is paid in taxes, calculated by dividing the total amount of taxes paid by the total income.
Average Tax Rate
The portion of total income that is paid in taxes, calculated by dividing the total tax paid by the taxpayer’s total income.
Tax Liability
The total amount of tax that an individual, corporation, or other entity is legally obligated to pay to a taxing authority.
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