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    Suppose the State Legislature in Your State Imposes a State
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Suppose the State Legislature in Your State Imposes a State

Question 107

Question 107

Multiple Choice

Suppose the state legislature in your state imposes a state licensing fee of $100 per year to be paid by all firms that file state tax revenue reports. This new business tax:


A) increases marginal cost.
B) decreases marginal cost.
C) increases marginal revenue.
D) decreases marginal revenue.
E) none of the above

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