Question

The mythical country of Januvia imposes a tax based on the number of titanium coins each taxpayer owns at the end of each year per the followin schedule Number of titanium coins Tax 0 - 200 $500 + $5 per titanium coin 201 - 500 $1,000 + $6 per titanium coin > 500 $4,000 + $7 per titanium coin Marvin, a resident of Januvia, owns 300 titanium coins at the end of the current year Marvin's titanium coins tax is $2,800 IL Marvin's marginal tax rate is $6. Marvin's average tax rate is $9.33 TV Marvin's average tax rate is $6. Only statement II is correct States Ild IV e correct Statements I, II, and I are correct Statements I, II and III are correct Statements II and I are correct

Answer 1

Number of Titanium Coins Tax 0-200 201-500 500 $ 500 + $5 Per titanium $ 1000 + 86 Per titanium $ 4000 + 87 per titanium he lies Marvin in Hence slab (I) owns 300 titanium coins hence Category II [201-500] , marvin Titanium coins far as is z $1000 + $6x300 $1000 + $ 1800 per Tax = $ 2800. (II - marginal Tap fate – It means change in Tax Per titatium coins. Iu Marrin case, he had 300 coins hence he fall in (20-500] slab and his Marginal Tax late - $6 per titanium Marvin marginal Tay late = $6 per Titanium

Il on coins coins owns marvin's Average Tax late a Total Tax No. of 3) $2800 -) $ 9:33 Average Tape 8 300 Pax late z$9.33. Average Condlusions from the above solutions, we conclude that Marvin's Titathium coin Jax is $2800 marvin's Marginal Tas is $6 marvin's Average Tax is 99.33 Hence, Statement I, I and III are correct