With the initial incomes of 50, 80 and 110. Suppose that the three group members chose income-tax rates of 100%, 100%, and 100%. Using the table provided, what would be the after-tax incomes of the three group members?
80, 80, 80
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Explanation: The income-tax rate that is implemented is the median (middle) one chosen -- in this case 100%. From the table provided, we see that if the tax rate is 100%, the final after-tax incomes are 80, 80 and 80.
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