If a firm in a purely competitive industry is confronted with an equilibrium price of $5, its marginal revenue Student Answer: may be either greater or less than $5. will also be $5. will be less than $5. will be greater than $5. Instructor Explanation

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A: c = q2   – n + 16 AC = q - n/q + 16/q MC = dc/dq = 2q Q = 24 – 2p p = 12 - 0.5Q Tax = 1 per unit New…

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A: Given:- C=q2-n+16 Q=24-2p Tax, t=1 Please find the images attached below for detailed solution.

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