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1.2 Corporate lump-sum tax with exogenous price Assume that the market price is constant, p = 50. Getting a permit to operate in this industry
1.2 Corporate lump-sum tax with exogenous price Assume that the market price is constant, p = 50. Getting a permit to operate in this industry costs a lumpsum tax/fee equal to 96 (phi). Draw the cost curves that include this fee and compare to the curves Without fee. How different levels of 96 affect the cost curves? How does the optimal quantity supplied by the rm depend on (if? What is the maximum amount of the fee that would be acceptable to the investor before he shuts down
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