Question

(g) The government imposes a per-unit tax on the production of knowledgium. Which of the seven cost curve(s) would be affected

Answer 1

If the government should impose the per unit tax, the parts that would be affected are the average variable cost and the average cost

What is the per Unit tax?

This is the tax that is imposed per unit or on each unit of a good that has being sold or a service that has been rendered.

This is the type of tax that would affect the average variable cost and the average cost.

This type of tax is one that is proportional to the unit of the good sold. This is in terms of the quantity sold and not the price that was used to sell the good.

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