Refer to Table 18-10. A tax exemption is granted for the first 10,000 earned per year. Suppose you earn 75,000.
a. What is the amount of taxes you will pay?
b. What is your average tax rate?
c. What is your marginal tax rate?
Question 2
A product's price approaches its marginal cost as market concentration increases.
Indicate whether the statement is true or false