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A firm faces the following average revenue (demand) curve: P = 130 - 0.02Q where Q is weekly production and P is price, measured in
A firm faces the following average revenue (demand) curve: P = 130 - 0.02Q where Q is weekly production and P is price, measured in cents per unit. The firm's cost function is given by C =50Q + 22,000. Assume that the firm maximizes profits. a. What is the level of production, price, and total profit per week? (Round all responses to two decimal places.) The equilibrium quantity is 2000 units, the price is 90 cents, and the total profit is $ 580 per week. b. If the government decides to levy a tax of 12 cents per unit on this product, what will be the new level of production, price, and profit? (Round all responses to two decimal places.) The equilibrium quantity is units, the price is |cents, and the total profit is $ per week
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