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(c) Consider a producer who faces a linear demand curve P = 24 - Q, where P is the price in dollar ($) and Q
(c) Consider a producer who faces a linear demand curve P = 24 - Q, where P is the price in dollar ($) and Q is the quantity demanded. The producer produces this good at a constant average and marginal cost of $6. Determine the price and quantity if the producer wishes to maximise profits. Suppose the government imposes a tax of $T per unit on the producer. How much will the consumer bear the tax burden? Explain.
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