Draw a diagram for a perfectly competitive firm in long run equilibrium. Include only the demand curve
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Draw a diagram for a perfectly competitive firm in long run equilibrium. Include only the demand curve facing the firm and its LRATC curve. Then show the impact of an excise tax (some number of dollars per unit) imposed by the government on this firm only but not on any other firm in the market. Can we say what this firm will do in the long-run?
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Initially this firm is in longrun equilibrium at point A wit...View the full answer
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Related Book For
Macroeconomics Principles and Applications
ISBN: 978-1133265238
5th edition
Authors: Robert e. hall, marc Lieberman
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