Assume a Firm Increases Its Revenue by $100 While Increasing

question 90

Multiple Choice

Assume a firm increases its revenue by $100 while increasing its cost of goods sold by $85.How much additional tax will the firm owe if its marginal tax rate is 25%?

• A) $3.75
• B) $7.50
• C) $13.75
• D) $25.00

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Definitions:

Tendon

A fibrous connective tissue that attaches muscle to bone, facilitating movement by transmitting the force generated by the muscle.

Dorsiflexion

The backward bending and contracting of your hand or foot, decreasing the angle between the dorsum (back) and the leg.

Plantar Flexion

The motion of moving the foot so that the toes are pointed downward, away from the leg.

Acetylcholine

A neurotransmitter involved in muscle activation, memory formation, and the transmission of nerve impulses.