A Per Unit Tax Will Cause Output Prices to Increase

question 14

Multiple Choice

A per unit tax will cause output prices to increase least when:

• A) marginal cost is constant.
• B) marginal cost is falling.
• C) average cost is falling.
• D) marginal cost is rising.

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Definitions:

Cooperation

The process of working together towards the same end or goal, often resulting in mutual benefit.

Equal Status

The condition or state where all individuals within a group or society are regarded and treated as having the same worth and rights.

Common Goals

Objectives or aims shared by a group of people, which often drive collaboration and collective action.

Supportive of Authorities

An attitude or behavior that demonstrates trust and compliance towards individuals in positions of power or authority.