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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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