The Economy Tomorrow Using the data in the table, if the price of ties is $21, determine the impact on marginal costs and identify if the number of ties the producer would supply would change when

Quantity Total cost

0 $10

1 17

2 26

3 37

4 50

5 65

6 82

7 101

8 122

9 145

10 170

a. The payroll tax is increased from 6 percent to 8 percent.

Marginal costs would

.

Profit-maximizing output would

.

b. The property tax was reduced by 10 percent.

Marginal costs would

.

Profit-maximizing output would

.

c. Profits were taxed at 21 percent.

Marginal costs would

.

Profit-maximizing output would

.