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:

Strike

A work stoppage caused by the mass refusal of employees to work, usually in protest against employment terms, working conditions, or other aspects of their contracts.

Collective Bargaining

The negotiation process through which management and unions reach an agreement about compensation, working hours, and working conditions for the bargaining unit.