-About How Much of the Tax Is Paid by the Sellers

question 114

Multiple Choice

-About how much of the tax is paid by the sellers?

• A)20 cents
• B)50 cents
• C)$1
• D)$1.80
• E)$3

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Definitions:

Marginal-Cost Curve

A graph that shows the relationship between the marginal cost of producing an additional unit and the total quantity of the product produced.

Law of Diminishing

A principle stating that as more units of a variable input are added to fixed inputs, the additional output from each new unit of input eventually decreases.

Implicit Costs

The opportunity costs associated with a company's own resources, not directly paid for with cash but are the result of using assets instead of investing them elsewhere.

Economic Profit

The difference between total revenue and the total costs, including both explicit and implicit costs, unlike accounting profit which only considers explicit costs.