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Business, 05.05.2020 22:43 19thomasar

Consider the economy of Citronia, where citizens consume only oranges. Assume that oranges are priced at $1 each. The government has devised the following tax plans: Plan A Consumption up to 1,000 oranges is taxed at 50%. Consumption higher than 1,000 oranges is taxed at 20%. Plan B Consumption up to 2,000 oranges is taxed at 10%. Consumption higher than 2,000 oranges is taxed at 25%. Use the Plan A and Plan B tax schemes to complete the following table by deriving the marginal and average tax rates under each tax plan at the consumption levels of 600 oranges, 1,200 oranges, and 2,500 oranges, respectively.

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Consider the economy of Citronia, where citizens consume only oranges. Assume that oranges are price...

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