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Commerce · Q403

Economics

Graduate and Post Graduate · Commerce · question 403

Q403

Assertion (A): The imposition of a per unit tax causes the monopolist's average cost and marginal cost curves to shift up. Reason (R): The per unit tax is like a variable cost.

A.
Both A and R are true and R is the correct explanation of A
Answer
B.
Both A and R are true, but R is not a correct explanation of A
C.
A is true, but R is false
D.
A is false, but R is true

Answer: Option A

Solution

Answer: Option A
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