Production of good in competitive market


Problem: Good x is produced in a competitive market using input a. Explain what would happen to the supply of good x in each of the following situations.

A. the price of input a increases.

B. an excise tax of $1 is imposed on good x.

C. an ad valorem of 5% is imposed on good x

D. a technological change reduces the cost of producing additional units of good x.

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Microeconomics: Production of good in competitive market
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