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8. (14 marks) Suppose that there is a firm that can sell any quantity at a price of 100 per unit. The firm's costs are
8. (14 marks) Suppose that there is a firm that can sell any quantity at a price of 100 per unit. The firm's costs are given by C(q) = iqz. The government charges a tax of $ per unit of the good sold (so if the firm sells g=>5, they must pay 5 in tax). a) (6 marks) What is the level of that maximises profits given a fixed tax per unit ? b) (8 marks) Given that the firm will choose the quanitity that is your answer to part a), what is the level of that maximises the amount of taxes collected
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