Use a Graph to Explain How a Tax Can Provide

question 1

Essay

Use a graph to explain how a tax can provide an incentive for a firm to produce a more efficient level of output.

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Definitions:

Quick-service Restaurant

A type of eating establishment known for fast food service and minimal table service, often part of a restaurant chain.

Franchising

A method of doing business wherein a franchisor licenses trademarks and proven methods of doing business to a franchisee in exchange for a recurring payment, and often a percentage of the franchisee's revenue.

Franchisors

Individuals or companies that grant a license to others allowing them to operate a business under the franchisor's brand and business model.

Experience

The knowledge or skill acquired by a period of practical involvement in or exposure to events or activities.