Which of the following affects both the marginal and average total cost curves of a firm in the short run?
A)A change in profit taxes.
B)A change in payroll taxes.
C)A change in property taxes.

Question

Quizplus · Accepted Answer

Any change in taxes, such as profit taxes or property taxes, only affects the average total cost curve of a firm in the short run. However, a change in payroll taxes affects both the marginal and average total cost curves, as it directly impacts the cost of labor for the firm.

Which of the Following Affects Both the Marginal and Average