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) marginal; variable
C) average fixed; average variable
D) marginal; fixed
Correct Answer:
Verified
Q181: Exhibit 21-11 Q182: If the marginal physical product (MPP)of the Q183: The long-run average total cost (LRATC)curve shows Q184: A rise in variable input prices will Q185: When a firm earns zero economic profit, Q188: The vertical distance between the AVC and Q189: The firm negotiates a new agreement with Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents![]()