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it is a microeconomics question about equilibrium and price and output. 3. Suppose there are ten identical firms in an industry. The cost function for

it is a microeconomics question about equilibrium and price and output.

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3. Suppose there are ten identical firms in an industry. The cost function for each firm is: c(y) = yz 2 + wy where y is the firm's output of the homogenous good, and where w is the wage rate of workers in the industry. Suppose further that w = 1.9Qs, where Qs denotes total industry output. (a) Find the industry supply function assuming symmetry. (b) Suppose market demand is QD = 6 - p, where p is the output price. Find the price, market quantity, wage rate, and total surplus in equilibrium. (c) Now suppose that the government imposes a unit excise tax of $1. What happens to the equilibrium price, market quantity, and total surplus in this case

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