Problem
In a two-good/two-factor economy with a fixed quantity of factors, what happens to the transformation curve between the goods if a tax is imposed on the use of one factor in the production of one good
(a) in a situation of perfectly competitive equilibrium in all markets in which there are no monopolies and no other taxes;
(b) in a situation in which the use of the other factor in the production of the same good is already taxed?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.