The long-run cost function of one of the identical carrot-producing firms is C(g) = 45q -q° +0.01q°. The market demand curve is Q = 7,500 - 210p. Now, the government starts collecting a specific tax, t, on the carrot market. a. What are the long-run equilibrium price, market quantity, and number of firms as functions of t? b. How does the equilibrium market quantity change as t changes? a. The long-run equilibrium price as a function of t is p(t) = |: (Enter numerical values as whole numbers.)

The long-run cost function of one of the identical carrot-producing firms is C(g) = 45q -q° +0.01q°. The market demand curve is Q = 7,500 - 210p. Now, the government starts collecting a specific tax, t, on the carrot market. a. What are the long-run equilibrium price, market quantity, and number of firms as functions of t? b. How does the equilibrium market quantity change as t changes? a. The long-run equilibrium price as a function of t is p(t) = |: (Enter numerical values as whole numbers.)

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter9: Perfect Competition

Section: Chapter Questions

Problem 14QP

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