Assume a Certain Firm Regards the Number of Workers It

question 260

Multiple Choice

Assume a certain firm regards the number of workers it employs as variable but regards the size of its factory as fixed. This assumption is often realistic

• A)in the short run but not in the long run.
• B)in the long run but not in the short run.
• C)both in the short run and in the long run.
• D)neither in the short run nor in the long run.

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Definitions:

Marginal Tax Rate

The percentage rate at which your final dollar of earnings is taxed, denoting the tax percentage applied to your income within each tax bracket you fall into.

Regressive Tax System

A tax system where the tax rate decreases as the taxable amount increases, placing a higher burden on lower-income individuals.

Taxpayers

Individuals or entities that are required to make payments to the government based on income, property, goods, and services.

Marginal Tax Rate

The rate at which the last dollar of a taxpayer’s income is taxed, indicating the percentage of additional income that will be taxed.