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AP Microeconomics
Unit 6 – Market Failure and the Role of Government
Topic 6.4
How does a per-unit tax impact marginal cost and average total cost (ATC)?
Per-unit tax decreases both marginal cost and ATC.
Per-unit tax increases marginal cost but decreases ATC.
Per-unit tax increases both marginal cost and ATC.
Per-unit tax decreases marginal cost but increases ATC.
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AP Microeconomics - 6.4 The Effects of Government Intervention in Different Market Structures
Key terms
Average Total Cost (ATC)
Marginal Cost
Per-Unit Tax
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About Fiveable
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Cram Mode
AP Score Calculators
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Crisis Text Line
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© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.
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