Explain whether each of the following actions would affect the firm's profit-maximizing decision. (How would each affect

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Explain whether each of the following actions would affect the firm's profit-maximizing decision. (How would each affect MR and MC?)
a. An increase in the per unit cost of a variable input such as labor
b. A decline in the output price for a price-taking firm
c. Institution of a small fixed fee to be paid to the government for the right of doing business
d. Institution of a 50 percent tax on the firm's economic profits
e. Institution of a per-unit tax on each unit the firm produces
f. Receipt of a no-strings-attached grant from the government
g. Receipt of a subsidy per unit of output from the government
h. Receipt of a subsidy per worker hired from the government?
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Intermediate Microeconomics and Its Application

ISBN: 978-1133189039

12th edition

Authors: Walter Nicholson, Christopher M. Snyder

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