In Problem 7, how would Paducah's profit-maximizing level of output be affected if the government imposed a
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a. What would Paducah's profit-maximizing level of output be if the government imposed a tax of $2 per bat?
b. Why do these two taxes have such different effects?
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a A tax of 10 per day would decrease Paducahs profit by 10 per day at every level of output But the ...View the full answer
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