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. A sales tax of $1 per unit of output is placed on a par- ticular firm whose product sells for $5 in a competitive

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. A sales tax of $1 per unit of output is placed on a par- ticular firm whose product sells for $5 in a competitive industry with many rms. a. How will this tax affect the cost curves for the rm? b. What will happen to the firm's price, output, and prot? c. Will there be entry or exit in the industry

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