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The local government is considering two tax proposals: a lump sum tax of $200 on each producer of Chocolates a tax of $1 per Chocolate,
The local government is considering two tax proposals: a lump sum tax of $200 on each producer of Chocolates a tax of $1 per Chocolate, paid by producers of Chocolates 1) Which of the following curves - AFC, AVC, and ATC will shift due to the lump sum tax (i)? Draw the graph and LABEL the curves, and explain the shifts. (2.5) 2)Which of the following curves - AFC, AVC, and ATC will shift due to the per Chocolate tax (ii)? Draw the graph and LABEL the curves, and explain the shifts. (2.5)
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