1. Assume a constant cost industry. Assume it is a competitive market and that the market is in a long-run equilibrium. Graph this.Show what happens in both the short run and the long run if the government imposes a one-time tax of $200 on each firm. That is, no taxes will ever again be imposed. What if the firm does not believe that no taxes will ever again be imposed, could this change your analysis?

2. Keeping with a constant cost industry, assume instead a report comes out showing that this good causes cancer. Show the short run and the long run result. Be sure to progress in a LOGICAL manner; each step is important.

3. Assume an increasing cost industry. The demand for this product increases. Show the short run and the long run result. Be sure to progress in a LOGICAL manner; each step is important