You are the owner manager of a perfectly competitive firm


You are the owner manager of a perfectly competitive firm that manufactures house paints. The industry is in a long run equilibrium. Each firm's long run cost curve is given by TC=36Q-10Q^2+Q^3. Suppose the government impose a tax of $1 for each unit of output sold. What will be the industry price after the industry returns to long run equilibrium? What will be each firm's level of output?

Solution Preview :

Prepared by a verified Expert
Business Management: You are the owner manager of a perfectly competitive firm
Reference No:- TGS01688738

Now Priced at $10 (50% Discount)

Recommended (96%)

Rated (4.8/5)