Firm Short-Run Output Decisions Under Different Taxation Schemes: An Application of Multivariable Calculus

When firms are deciding in the short-run on how much output to produce in a given period they implicitly or explicitly equate marginal cost to marginal benefits.  In the short-run different types of taxation schemes can change the optimum production levels while other forms of taxation do not change the output decisions of firms.  In … More Firm Short-Run Output Decisions Under Different Taxation Schemes: An Application of Multivariable Calculus