Currently the industry is in a state of long-run equilibrium with each firm producing 10 units of the product. All the firms in the industry are producinga total of 3,000 units of the product. Firms are identical in size (they all produce the same quantity of the good.) The firm size will remain unchanged in the long run.

To encourage the producers to increase the production of this amazingly wonderful product, the government offers a subsidy of $32 per unit to producers. In the short run, the price to consumers will drop to (?) dollars per unit and the price received by producers will increase to (?) dollars per unit. Each firm will increase production to (?) units and will make an economic profit of (?) dollars. The government needs to raise total taxes by the amount of (?) dollars to implement this subsidy program.

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