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Suppose that the government imposes a producer tax. That is, the firm pays t units of consumption goods to the government for each unit of

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Suppose that the government imposes a producer tax. That is, the firm pays t units of consumption goods to the government for each unit of output it produces. Determine the effect of this tax on the firm's demand for labour. The tax acts to for the firm. The firm chooses the quantity of labour where There is the labour demand curve, meaning that the firm will hire

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