The city government is considering two tax proposals- a

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Reference no: EM13351926

The city government is considering two tax proposals:

- A Lump-sum tax of $300 on each producer of hamburgers.

- A Tax $1 Per burger, paid by producers of hamburger.

A. which is the following curves average fixed cost, average variable cost, average total cost, and marginal cost would shift as a result of the lump-sum tax? why ? show this in a graph. label the raph as precisely as possible.

B. which of these same curve would shift as a result of the per-burger tax? why? show this in a new graph. label the graph as precisely as possible.

Reference no: EM13351926

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