Suppose a firm must pay an annual tax, which is a fixed sum, independent of whether it
Question:
a) How does this tax affect the firm’s fixed, marginal, and average costs?
b) Now suppose the firm is charged a tax that is proportional to the number of items it produces. Again, how does this tax affect the firm’s fixed, marginal, and average costs?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 78% (19 reviews)
a This tax is a fixed cost because it does not vary with the quantity of ...View the full answer
Answered By
JAPHETH KOGEI
Hi there. I'm here to assist you to score the highest marks on your assignments and homework. My areas of specialisation are:
Auditing, Financial Accounting, Macroeconomics, Monetary-economics, Business-administration, Advanced-accounting, Corporate Finance, Professional-accounting-ethics, Corporate governance, Financial-risk-analysis, Financial-budgeting, Corporate-social-responsibility, Statistics, Business management, logic, Critical thinking,
So, I look forward to helping you solve your academic problem.
I enjoy teaching and tutoring university and high school students. During my free time, I also read books on motivation, leadership, comedy, emotional intelligence, critical thinking, nature, human nature, innovation, persuasion, performance, negotiations, goals, power, time management, wealth, debates, sales, and finance. Additionally, I am a panellist on an FM radio program on Sunday mornings where we discuss current affairs.
I travel three times a year either to the USA, Europe and around Africa.
As a university student in the USA, I enjoyed interacting with people from different cultures and ethnic groups. Together with friends, we travelled widely in the USA and in Europe (UK, France, Denmark, Germany, Turkey, etc).
So, I look forward to tutoring you. I believe that it will be exciting to meet them.
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Economics questions
-
Suppose a firm must employ 20 workers in order to produce 2000 units of output that the firm has contracted to supply to the government for $1.4 million. The firm must choose how much to invest in...
-
a. Assume that you are called in as a forensic accountant to advise Geox. How would you suggest evaluating the contemplated open-source shopping cart systems? b. How does the fact that the systems...
-
What effect do you think each of the following factors should have on the interest rate that a firm must pay on a new issue of long-term debt? Indicate whether each factor would tend to raise lower,...
-
The banker's acceptance and the commercial letter of credit involve four principal parties. Which of the following is not one of those parties? The importer The exporter O The receiving country's...
-
The following calendar year-end information is taken from the December 31, 2015, adjusted trial balance and other records of Best Bikes. Advertising expense . . . . . . . . . . . . . . . . . . . . $...
-
Dimethoxyethane (DME) is a polar aprotic solvent often used for S N 2 reactions. Propose a plausible synthesis for DME using acetylene and methyl iodide as your only sources of carbon atoms....
-
A thief siphoned \(15 \mathrm{gal}\) of gasoline from a gas tank in the middle of the night. The gas tank is \(12 \mathrm{in}\). wide, \(24 \mathrm{in}\). long, and 18 in. high and was full when the...
-
Sherwin- Williams is a national paint manufacturer and retailer. The company is segmented into five divisions: Paint Stores (branded retail location), Consumer (paint sold through stores such as...
-
Moran owns a building he bought during year 0 for $150,000. He sold the building in year 6. During the time he held the building, he depreciated it by $32,000. What are the amount and character of...
-
Determine the heat of mixing H of sulfuric acid in water and the partial specific enthalpies of H 2 SO 4 and H 2 O for a solution containing 65-wt-% H 2 SO 4 at 300 K.
-
A firm has a fixed production cost of $5000 and a constant marginal cost of production of $500 per unit produced. a) What is the firms total cost function? Average cost? b) If the firm wanted to...
-
A recent issue of Business Week reported the following: During the recent auto sales slump, GM, Ford, and Chrysler decided it was cheaper to sell cars to rental companies at a loss than to lay off...
-
In the merge-sort tree shown in Figures 11.2 through 11.4, some edges are drawn as arrows. What is the meaning of a downward arrow? How about an upward arrow? Data from in Figures 11.2 85 85 24 24 63...
-
1. What is the mathematical definition of torque, t? 2. What is the unit of torque, t, in the MKS system of units? 3. Are the units of work and torque the same? 4. What is the basic difference...
-
Protrade Corporation acquired 80 percent of the outstanding voting stock of Seacraft Company on January 1, 2023, for $516,000 in cash and other consideration. At the acquisition date, Protrade...
-
How to send an email to my professor in SBAR format communication. email sample?
-
SELF EVALUATION. After writing a PERSUASIVE SPEECH ON THE TOPIC: HOW TO BUILD A HAPPY MARRIAGE 1. Are you satisfied with your speech overall? Why or why not. 2. Give at least two examples of things...
-
A fund manager ( FM ) is constructing a portfolio of two asset classes, a stock and a corporate bond. The return on the stock is 1 2 % , and its standard deviation of return is 1 7 % , while for the...
-
Evaluate the expression without using a calculator. log 27 1/9
-
The Home Depot is the leading retailer in the home improvement industry and one of the 10largest retailers in the United States. The company included the following on its January 29, 2012, balance...
-
1. Arrows up or down. When marginal cost is less than average cost, an increase in output_____ average cost. When marginal cost exceeds average cost, an increase in _____output average cost. 2. The...
-
1. Arrows up or down. When marginal cost is less than average cost, an increase in output_____ average cost. When marginal cost exceeds average cost, an increase in _____output average cost. 2. The...
-
1. The presence of _______explains the negatively sloped portion of a long-run average-cost curve, and the notion of _______explains the horizontal portion of the curve. 2. Consider the information...
-
Skysong needs to calculate the company's expected cash receipts for the upcoming month to determine whether additional financing is needed. Typically, the company's sales consist of 40% cash sales...
-
The value of NSE index is 1140. The continously compunded risk free rate is 4.6% amnd continous dividend yield is 2.1%. Calculate the no arbitrage price for a 140 day forward contract on the index
-
Explain why MNCs such as Coca Cola and PepsiCo, Inc., still have numerous opportunities for international expansion. Explain briefly
Study smarter with the SolutionInn App