If the government places a $2 tax on each unit of good X that is produced by Firm A, it follows that the tax will not affect __________ cost, but will affect __________ cost.
A)variable; fixed
B)fixed; variable
C)average fixed; average variable
D)marginal; fixed
E)b and c

Question

Quizplus · Accepted Answer

The Answer of If the government places a $2 tax on each unit of good X that is produced by Firm A, it follows that the tax will not affect __________ cost, but will affect __________ cost.
A)variable; fixed
B)fixed; variable
C)average fixed; average variable
D)marginal; fixed
E)b and c

If the Government Places a $2 Tax on Each Unit