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Suppose now that some new tax preparing firms entered in Lafayette market in question (23) and, as a result, the market became perfectly competitive .

Suppose now that some new tax preparing firms entered in Lafayette market in question (23) and, as a result, the market became perfectly competitive. Its marginal costs are still stable at $100 per unit and its total revenue curve is still the same, that is

TR = $280Q $0.005Q2

  1. Calculate Great Tax's output.
  2. Calculate its price.
  3. Calculate its profit.

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