Which one of the following is the tax rate that applies to the next dollar of taxable income that a firm earns?

Question

Quizplus · Accepted Answer

The marginal tax rate is the tax rate that applies to the next dollar of taxable income earned by a firm. It is important for firms to know their marginal tax rate so they can make informed decisions about expanding their business, investing in new projects, and managing their finances. The other options (average tax rate, variable tax rate, absolute tax rate, and contingent tax rate) do not specifically refer to the tax rate that applies to the next dollar of taxable income earned by a firm.

Which One of the Following Is the Tax Rate That