Marginal Cost Structure

Economics
Tutor: None Selected Time limit: 1 Day

Are there changes in the marginal cost structure if there is a reduction in output resulting from the property tax increase?

May 5th, 2015

Marginal cost is the cost of producing an extra unit and is a function of variable cost. 

In this case, increase in property tax results into reduced output. If the production output is within the present capacity of the fixed assets (property - land, factory, machines), property tax will be considered a fixed asset.

Hence there will be NO changes in the marginal cost. 


May 5th, 2015

Studypool's Notebank makes it easy to buy and sell old notes, study guides, reviews, etc.
Click to visit
The Notebank
...
May 5th, 2015
...
May 5th, 2015
Dec 8th, 2016
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer