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Business, 24.03.2021 17:20 alyssams4148
Suppose that the government charges a firm a franchise tax each year (instead of only once). Describe the effect of this tax on the marginal cost, average variable cost, short-run average cost, and long-run average cost curves. (Assume that the firm's before-tax average cost curve, , is U-shaped.)The annual franchise tax not affectthe firm's marginal cost curve, not affect increases the firm's average variable cost curve, does not short-run average cost curve, and not affect decreases the long-run average cost curve.
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Suppose that the government charges a firm a franchise tax each year (instead of only once). Descr...
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