Question
Each firm in a competitive market has a cost function of C(q) = q q^2 + q^3 . The market has an unlimited number of
Each firm in a competitive market has a cost function of C(q) = q q^2 + q^3 . The market has an unlimited number of potential firms. The market demand function is Q = 24 P. a. Determine the long-run equilibrium price, the quantity per firm, the market quantity, and the number of the firms.
b. How do these values change if a tax of $1 per unit is collected from each firm?
c. How would these values change if instead of a tax the government implements a price floor of 30?
d. What would that imply for the decisions of producing and entering/exiting the market?
i only want the answer for C and D
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