Figure 6-24 -Refer to Figure 6-24.Suppose Sellers,rather Than Buyers,were Required to Pay

question 162

Multiple Choice

Figure 6-24
-Refer to Figure 6-24.Suppose sellers,rather than buyers,were required to pay this tax (in the same amount per unit as shown in the graph) .Relative to the tax on buyers,the tax on sellers would result in

• A)buyers bearing the same share of the tax burden.
• B)sellers bearing the same share of the tax burden.
• C)the same amount of tax revenue for the government.
• D)All of the above are correct.

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Definitions:

Marginal Cost

The money needed to produce an additional unit of a product or service.

Average Variable Cost

The total variable costs divided by the quantity of output produced, representing the variable cost incurred to produce each unit of output.

Marginal Cost

The leap in all-encompassing expenses associated with the production of an additional unit of a product or service.

Average Total Cost

The cost of producing everything, when divided by the number of units made, signifies the cost for each unit produced.