The sales of bread have increased from 10 units to 15 units. Suppose the government imposed a unit tax of Rs. 5 on current production, then the total tax that the firm must pay to the government is?

Rs. 75

The correct answer is Option (2) → Rs. 75

Total Tax=Unit Tax × Number of Units Sold

Given:

• Unit Tax = ₹5

• Sales increased from 10 units to 15 units → So, current production = 15 units

Total Tax=5×15 = ₹75