The government imposes a specific tax of = 2 on laundry. Acme Laundrys pre-tax cost function

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The government imposes a specific tax of τ = 2 on laundry. Acme Laundry’s pre-tax cost function is C(q) = 10 + 10q + q2. How much should the firm produce to maximize its after-tax profit if the market price is p? How much does it produce if p = 50? (Hint: See Exercise 3.2 and Solved Problem 8.1.) M

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