Refer to the Information Provided in Table 19 -Refer to Table 19

question 127

Multiple Choice

Refer to the information provided in Table 19.5 below to answer the questions that follow.
Capital and labor each cost $1 per unit. The firm produces 1,000 units of output.
Table 19.5
$$\begin{array} { | c | c c | } & \begin{array} { c } \text { Input } \\\text { Requirements } \\\text { per unit of } \\\text { Output }\end{array} \\\text { Technology } & K& L \\\hline \text { A } & 5 & 2 \\\hline \text { B } & 3 & 5 \\\hline\end{array}$$
-Refer to Table 19.5. Suppose the government imposes a 100% tax on capital. What is the total burden of the tax? Assume that the industry is perfectly competitive and thus price is equal to the marginal cost of production.

• A) $1,000
• B) $3,000
• C) $4,000
• D) $11,000

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Definitions:

Lost Property

Property that the owner has involuntarily parted with and then cannot find or recover.

Mislaid Property

Property that is intentionally set down by someone who then forgets to retrieve it, differing from lost or abandoned property.

Prize-Winning Horse

A horse that has won awards or recognition in competitive events or shows due to its performance, breed qualities, or other characteristics.

Voluntarily Transfers

The act of willingly transferring ownership or rights of an asset or property from one party to another without coercion.