A Specific Tax of $1 Per Unit of Output Will

question 121

Multiple Choice

A specific tax of $1 per unit of output will affect a firm's

• A) average total cost, average variable cost, average fixed cost, and marginal cost.
• B) average total cost, average variable cost, and average fixed cost.
• C) average total cost, average variable cost, and marginal cost.
• D) marginal cost only.

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Definitions:

Order

(1) An order to appear and bring specified documents. (2) A binding decision issued by an ALJ after a hearing.

Shelter Principle

The principle which holds that when an item is transferred, the transferee acquires all the rights the transferor had to the item.

Transferee

A person or organization that acquires property, rights, or interests from someone else via a lawful transfer method.

Transferor

The party that transfers rights, property, or interests to another, known as the transferee.