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A Specific Tax of $1 Per Unit of Output Will

Question 121

Multiple Choice

A specific tax of $1 per unit of output will affect a firm's


A) average total cost, average variable cost, average fixed cost, and marginal cost.
B) average total cost, average variable cost, and average fixed cost.
C) average total cost, average variable cost, and marginal cost.
D) marginal cost only.

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