Which of the following represents the true economic cost of production when firms produce goods that cause negative externalities?
A) the external cost of production B) the explicit cost of production
C) the social cost of production D) the private cost of production
Question 2
If you discovered that a country had an income tax system whereby the marginal and average tax rates were the same for all income levels what might you conclude is true about the structure of this income tax system.
How is it possible in other words for the marginal and average tax rate to be the same?
