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(C) Suppose that the firm is taxed $20 per unit of its output and the price of its input is subsidized by $10. 'What is

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(C) Suppose that the firm is taxed $20 per unit of its output and the price of its input is subsidized by $10. 'What is its new input level? What is its new output level? How much profit does it make now? (Hint: A good way to solve this is to write an expression for the firrn's profit as a function of its input and solve for the profit-maximizing amount of input.)

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