Question: Using the information in Table 7.1, construct another table showing how a lump-sum franchise tax of $30 affects the various average cost curves of the

Using the information in Table 7.1, construct another table showing how a lump-sum franchise tax of $30 affects the various average cost curves of the firm.

Table 7.1

Average Variable Cost, AVC = VC/q Fixed Cost, F Average Fixed Cost, AFC = Flq Average Cost, = Clq AC : Output, Variable

Average Variable Cost, AVC = VC/q Fixed Cost, F Average Fixed Cost, AFC = Flq Average Cost, = Clq AC : Output, Variable Total Marginal Cost, MC Cost, VC Cost, C 48 48 1. 48 25 73 25 48 25 73 2 48 46 94 21 24 23 47 48 66 114 20 16 22 38 4 48 82 130 16 12 20.5 32.5 29.6 48 100 148 18 9.6 20 120 168 20 20 28 48 48 141 189 21 6.9 20.1 27 48 168 216 27 6. 21 27 27.3 48 198 246 5.3 22 10 48 230 278 32 4.8 23 27.8 272 24.7 11 48 320 42 4.4 29.1 12 48 321 369 49 4.0 26.8 30.8

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