A Per-Unit Excise Tax on a Single Competitive Firm Causes

question 74

Multiple Choice

A per-unit excise tax on a single competitive firm causes:

• A)all cost curves,except the total fixed cost curve to increase by the amount of the tax.
• B)all per-unit cost curves to increase by less than the amount of the tax.
• C)all per-unit cost curves,except the marginal cost curve,to decrease by the amount of the tax.
• D)all per-unit cost curves and the marginal cost curve to increase by the amount of the tax.

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Definitions:

Amortized

Adjusted through gradual reduction of the loan balance or asset value over time by making regular payments that cover both principal and interest.

Goodwill

An intangible asset that arises when a business is purchased for more than the fair value of its net identifiable assets.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold in a company, including materials and labor.

Property, Plant, & Equipment

Long-term tangible assets that are used in the operation of a business and are expected to be used over more than one fiscal year.