In a perfect competition model, the change in which of the following costs/ imposition of taxes does not affect the equilibrium position of the firm in the short run.
(A). Increase in fixed cost
(B). Imposition of lump-sum tax
(C). Imposition of profit tax
(D). Imposition of specific sales tax (Per unit of output)
Choose the correct answer from the options given below:
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Lump-sum taxes, fixed costs, and profit taxes do not affect Marginal Cost.
If Marginal Cost is unaffected, the firm's profit-maximizing output level remains unchanged in the short run.