Which of the Following Is True

question 82

Multiple Choice

Which of the following is true?

• A)If there are only two firms in a market, prices must be above marginal cost.
• B)If there is only one firm in a market, prices must be above marginal cost.
• C)all of the statements associated with this question are correct.
• D)none of the statements associated with this question are correct.

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Definitions:

Progressive Tax

A tax system where the rate increases as the taxable amount rises, aiming to reduce the tax burden on individuals who have a lower ability to pay.

Marginal Tax Rate

The rate at which the last dollar of a taxpayer’s income is taxed, indicating the percentage of tax applied to your income for each tax bracket in which you qualify.

Regressive Tax

A tax applied uniformly, taking a larger percentage of income from low-income earners than from high-income earners, considered to be inversely proportional to the taxpayer's ability to pay.

Average Tax Rate

The proportion of total income that an individual or business pays in taxes, calculated by dividing the total tax paid by the taxable income.