In a regressive tax rate structure. a. the average tax rate is lower than the marginal tax rate. b. the average tax rate increases with the size of the tax base. c. the average tax rate decreases as the size of the tax base increases. d. the average tax rate does not vary with the size of the tax base.

c) the average tax rate decreases as the size of the tax base increases.

Explanation:

A regressive tax is a tax imposed in such a manner that the tax rate decreases as the amount subject to taxation increases.

"Regressive" describes a distribution effect on income or expenditure, referring to the way the rate progresses from high to low, so that the average tax rate exceeds the marginal tax rate.

Regressive" describes a distribution effect on income or expenditure, referring to the way the rate progresses from high to low, so that the average tax rate exceeds the marginal tax rate.

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