Figure 8-5 -Refer to Figure 8-5.If the Tax Is Imposed on the Is

question 45

Multiple Choice

Figure 8-5

-Refer to Figure 8-5.If the tax is imposed on the buyer,what price would the sellers receive for their product

• A)$2
• B)$6
• C)$10
• D)$16

---

Definitions:

Economies of Scale

Economies of scale refer to the cost advantage that arises with an increased output of a product, as fixed costs are spread out over more units of production, leading to a decrease in the per-unit cost.

Diseconomies of Scale

The phenomenon where production costs increase as a firm's production scale becomes too large, leading to inefficiencies.

Diseconomies of Scale

The phenomenon where production costs increase as a company grows larger, leading to reduced efficiency.

Bureaucratic

Pertaining to a system of administration characterized by strict policies, procedures, and hierarchy.