Question

B. the product of abcgolf uses several exotic raw materials. the government places a tax on those raw materials, and the mc and atc both increase. how will the profit maximizing price and quantity change as a result

Answer 1

When marginal cost and average total cost for a product is increased, the amount of price needed by companies to accomplish target profit will also be increased (ncrease in profit maximizing price).
On the other hand, the quantity change will showd lower amount of material due to the expenses in acquiring the material at new cost.