Taxes can obviously affect firms' costs. Explain how each of the following taxes would affect total, average,

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Taxes can obviously affect firms' costs. Explain how each of the following taxes would affect total, average, and marginal cost. Be sure to consider whether the tax would have a different effect depending on whether one discusses short-run or long-run costs:
a. A franchise tax of $10,000 that the firm must pay in order to operate
b. An output tax of $2 on each unit of output
c. An employment tax on each worker's wages?
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Intermediate Microeconomics and Its Application

ISBN: 978-1133189039

12th edition

Authors: Walter Nicholson, Christopher M. Snyder

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