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A company has a demand function for its goods p = 60-24Q. If the total cost to produce the item is TC = 100 +
A company has a demand function for its goods p = 60-24Q. If the total cost to produce the item is TC = 100 + 12Q, as well as against the goods are subject to tax in the amount of t / unit, then: a. Determine the amount of tax / unit that must be imposed in order for government tax revenue the maximum and the profit that the producer gets is also the maximum. b. Determine the amount of government tax revenue and producer profits the maximum.
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