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Exporters in Namibia export Q tons of Namibian manufactured products. The selling price in the international market is given by P} = a 20, The
Exporters in Namibia export Q tons of Namibian manufactured products. The selling price in the international market is given by P} = a 20, The producer price in Namibia is given by P; = + =, In addition, it costs y per ton in 3 6 P transport costs.
1.Express the exporters profit as a function of Q. (5)
2.Find the maximumprofit and quantity exported (5)
3.Suppose the Government imposes a export tax of t per ton exported. Find the new profit maximising quantity AND the profit. (10)
Find the export tax rate which maximizes tax revenue.
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