If the Government Places a $2 Tax on Each Unit

question 223

Multiple Choice

If the government places a $2 tax on each unit of good X that is produced by Firm A, it follows that the tax will not affect __________ cost, but will affect __________ cost.

• A)variable; fixed
• B)fixed; variable
• C)average fixed; average variable
• D)marginal; fixed
• E)b and c

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Definitions:

Autonomic Subdivision

A part of the nervous system that controls involuntary bodily functions, such as heart rate, digestion, and respiratory rate.

Sympathetic Nerves

Part of the autonomic nervous system that often prepares the body for rapid action in response to stress by accelerating the heart rate and increasing blood pressure, among other functions.

Parasympathetic

The branch of the autonomic nervous system that conserves energy as it slows the heart rate, increases intestinal and gland activity, and relaxes sphincter muscles.

Forebrain

The anterior part of the brain that includes the cerebral hemispheres, thalamus, and hypothalamus, important for complex behaviors, emotion, memory, and thought.