1. 

5. There are 77. rms in a competitive industry. The market demand function is given by p = 50 2Q. A rm's cost function is C (q) = (12. The total surplus is given by $1 = $2173). Suppose the government imposes a perunit tax If > 0 on consumers. That is, for each unit of goods purchased, the consumer pays p + t. As a result, the market demand function becomes 10 + t = 50 2Q. The tax goes to the government and rms only receive p for each unit of output sold. So the prot of a rm is pg r12. Derive the total surplus, denoted by 5'2. Is 32 > 81? .u