Answer:
The burden of tax will be more on employees, tax reduction will be less for employees than employers.
Explanation:
Tax burden is more on buyers , if the demand is relatively more inelastic ; and tax burden is more on sellers, if the supply is relatively more inelastic.
If federal government reduces social security tax (from 12.4% to 6.2%) :
Since supply of labour is more inelastic, the burden of tax would be more on labour suppliers i.e employees. So ; a total tax reduction 6.2% is likely to reduce tax burden borne by labour demanders i.e employers, more than reduction in tax burden borne by labour suppliers i.e employees (as the labour supply is more inelastic).
displays declining unit costs so long as output is increasing. indicates the lowest unit costs achievable when a firm has had sufficient time to alter plant
<h3>What is
costs?</h3>
A cost is the value of money that has been used up to produce something or deliver a service and is thus no longer available for use in production, research, retail, or accounting. In business, the cost could be one of acquisition, in which case the money spent to acquire it is counted as cost.
The four major types of cost are direct, indirect, fixed, and variable. In addition, you should consider operating costs, opportunity costs, sunk costs, and controllable costs.
Businesses incur two types of costs: fixed and variable costs. Variable costs vary with output, whereas fixed costs do not. Overhead costs are another term for fixed costs. They are incurred regardless of whether a
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