Each of the 10 firms in a competitive market has a before-tax cost function of C=25 +g. The market demand function is Q= 720 - p. Suppose the government imposes a specific tax of $4.80 per unit to be paid by producers. Determine the equilibrium price, quantity per firm, and market quantity. The equilibrium price is $. (Enter your response as a whole number.)

Each of the 10 firms in a competitive market has a before-tax cost function of C=25 +g. The market demand function is Q= 720 - p. Suppose the government imposes a specific tax of $4.80 per unit to be paid by producers. Determine the equilibrium price, quantity per firm, and market quantity. The equilibrium price is $. (Enter your response as a whole number.)

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter6: Elasticity

Section6.4: The Relationship Between Taxes And Elasticity

Problem 4ST

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