Q1

Q1: Can the government legislate that the burden of tax will fall only on sellers of food? Why or why not? Answer: The burden of tax will not fall only on the sellers of the food because the sellers have the prime motive of earning of profits and they will pass the  burden of the food tax on the people consuming consuming it and hence the tax tax burden will solely be bear by the buyers only in the form fo rm of indirect taxes. It is impossible to keep the burden of the tax solely on the sellers because the sellers aren’t the end users and they will transfer the burden by any means on the customers only. The commodity is also perfectly inelastic hence the consumers have to bear the  burden o f the taxes. It is in in this way the government cannot legislate that the  burden of taxes will fall only on the sellers of the food items items only.

Q2: Do you think that the burden of the food tax will tend to fall on the sellers of the food or buyers of the food? Why? Answer: The food is the inelastic commodity hence the burden of the tax will finally tend to fall on the buyers of the food only. The food is an everyday commodity and it has to be consumed by the consumers at every price level. Hence, the seller will easily transfer the burden of the taxes on the consumers.

Q3: If all the production..... Answer: Yes, it is true that all the factor inputs work on the marginal  productivity but land will will always remain fix and its productivity productivity just not changes with the changes in the labour input, the production could have been doubled due to the existence of the many other factor inputs such as  productivity of soil and uses of fertilizers fertilizers or the change in the production technique. It is not true to say that the output changes with the changes in the  productivity of the factor input labour labour only.

Is it likely/..... Answer: Yes, it possible for producer to increase the production by increasing the factor input by the time the fixed factor will not get fully employed. e mployed. By the time the production cycle is in the phase of the increasing returns of factor input

that means marginal productivity of the factor input is positive and increasing. During this phase, the increase in the proportion of the factor input will lead to the increase in more output.

In the long run...

During the periods of the long run, if the producer is able to enjoy the economies of scale then the average cost of production will keep on declining and if the producer has to face the diseconomies of scale then the average cost of production will increase. Hence, the producer has to check the phase in which the producer is operating.