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Suppose the government imposes a sales tax on a good sold by firms in a competitive industry. Describe what happens to the price of the

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Suppose the government imposes a sales tax on a good sold by firms in a competitive industry. Describe what happens to the price of the good in the short run and in the long run when firms are free to enter and exit. What happens to the number of rms in the industry and to total production in the industry? (6 points)

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