Arrange the following in ascending order as impact of the unit tax on supply :
(A) After imposition of unit tax ,firm will supply less unit of output
(B) Firm's long run average cost and marginal cost increases by Rs.t
(C) A unit tax is that tax which is imposes on per unit sale of output.
(D) suppose the government place a unit tax of Rs,t
Choose the correct answer from the options given below:
Arrange the following in ascending order as impact of the unit tax on supply :
(A) After imposition of unit tax ,firm will supply less unit of output
(B) Firm's long run average cost and marginal cost increases by Rs.t
(C) A unit tax is that tax which is imposes on per unit sale of output.
(D) suppose the government place a unit tax of Rs,t
Choose the correct answer from the options given below:
Solution
The logical sequence starts with the definition of a unit tax (C), then the government imposing a tax of Rs (D). This raises the firm's long run average cost and marginal cost by Rs (B), shifting cost curves up, so the firm supplies less output at each price (A). Order: (C), (D), (B), (A).
Note: The NTA prompt says 'ascending order', but the statements form a cause-and-effect chain. We have arranged them in logical sequence, which appears to be the intended task.
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