Each of the 10 firms in a competitive market has a before-tax cost function of C=25+q°. 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 $ 124. (Enter your response as a whole number.) The quantity per firm is q = units. (Enter your response rounded to one decimal place.)

Each of the 10 firms in a competitive market has a before-tax cost function of C=25+q°. 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 $ 124. (Enter your response as a whole number.) The quantity per firm is q = units. (Enter your response rounded to one decimal place.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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