Differentiate between the average tax rate and the marginal tax rate
What will be an ideal response?
The average tax rate faced by a household is the total tax paid divided by total income earned. The marginal tax rate, on the other hand, refers to how much of the last dollar earned the household will pay in taxes.
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Which firm is not dealing with adverse selection
a. a manufacturer forgoes a usual 90 day probationary period for new employees b. a temporary clerical agency requires a typing test c. a manufacturer requires suppliers to be ISO 9000 certified d. Smokers get the worse life insurance rates as non-smokers
Oligopoly is more difficult to analyze than other market models because:
A. the number of firms is so large that market behavior cannot be accurately predicted. B. the marginal cost and marginal revenue curves of an oligopolist play no part in the determination of equilibrium price and quantity. C. of mutual interdependence and the fact that oligopoly outcomes are less certain than in other market models. D. unlike the firms of other market models, it cannot be assumed that oligopolists are profit maximizers.