Consider a competitive market for beans with 8,000 identical farmers, a competitive market price of $8 and the following T for each farmer:

Also consider the following market demand function:

a)Calculate the optimal level of production (in tonnes) for each farmer (show workings)

(2 marks)

b)Assuming 8,000 bean farmers of equal size, determine the market supply function and the equilibrium market quantity (show workings)(3 marks)

c)Consider that the government now imposes a 25% tax on farmers, calculate the new market equilibrium price (two decimal places) and new market equilibrium output (two decimal places) (show workings)(3 marks)

d)Calculate the value of the deadweight loss for consumers and producers following a 25% tax on beans, as well as, the amount of government revenue.