Which of the following statements is correct?
a. The average tax rate gauges the sacrifice made by a taxpayer, whereas the marginal tax rate gauges the distortion of taxes on consumer decisions.
b. The marginal tax rate gauges the sacrifice made by a taxpayer, whereas the average tax rate gauges the distortion of taxes on consumer decisions.
c. The average tax rate measures how much the tax system discourages people from working.
d. The marginal tax rate measures total taxes paid divided by total income.
a
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Dustin's copy shop can use four alternative plants. The figure above shows the average total cost curves for Plant 1 (ATC1), Plant 2 (ATC2), Plant 3 (ATC3), and Plant 4 (ATC4). Dustin's Plant 2 will be economically efficient if the firm produces
A) 2,000 copies per day. B) 4,800 copies per day. C) 5,300 copies per day. D) 6,000 copies per day.
In the above figure, what would be the wage paid and quantity of labor employed under competitive market conditions compared to monopsony conditions?
A) W1 and L1 with competition versus W2 and L2 with monopsony B) W2 and L2 with competition versus W1 and L1 with monopsony C) W2 and L2 with competition versus W3 and L1 with monopsony D) W3 and L3 with competition versus W3 and L1 with monopsony