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Governments can affect a firm's costs by imposing (or not) a variety of taxes. Evaluate the impact of the following taxes on a firm's average
Governments can affect a firm's costs by imposing (or not) a variety of taxes. Evaluate the impact of the following taxes on a firm's average (both fixed and variable) and marginal costs in both the short and long run:
a) A tax on income earned from interest.
b) A tax deduction for the depreciation of capital.
c) A tax credit for research and development activity.
d) A tax on the use of capital.
e) A tax on each unit of output produced.
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