Suppose the state legislature in your state imposes a state ...

[penza]

Suppose the state legislature in your state imposes a state licensing fee of 100 per year to be paid by all firms that file state tax revenue reports. This new business tax:
 
  A) increases marginal cost.
  B) decreases marginal cost.
  C) increases marginal revenue.
  D) decreases marginal revenue.
  E) none of the above

Question 2

When the demand curve is downward sloping, marginal revenue is
 
  A) equal to price.
  B) equal to average revenue.
  C) less than price.
  D) more than price.

[bimper21]

Answer to Question 1

E

Answer to Question 2

C