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R 8 . 6 . Suppose the government wishes to support newsprint providers and discourage the purchase of the apps produced by the digital news
R Suppose the government wishes to support newsprint providers and discourage the purchase of the apps produced by the digital news provider in the previous example. It imposes a tax of per app produced, so that the new total cost relationship is TCQQQa How does this affect profitmaximising output and price? b What is the new maximum profit? c What proportion of the tax is passed on to the consumer?
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