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Suppose a Farmer Is a Price Taker in Soybeans with Cost

Question 3

Multiple Choice

Suppose a farmer is a price taker in soybeans with cost functions given by Suppose a farmer is a price taker in soybeans with cost functions given by Suppose the farmer has to pay a 10% tax on revenue.The new profit maximizing level of output is A) unaffected by the tax. B) increased because of the tax. C) decreased because of the tax. D) Not enough information to determine. Suppose the farmer has to pay a 10% tax on revenue.The new profit maximizing level of output is


A) unaffected by the tax.
B) increased because of the tax.
C) decreased because of the tax.
D) Not enough information to determine.

Correct Answer:

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