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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Macroeconomics Principles and Applications

ISBN: 978-1133265238

5th edition

Authors: Robert e. hall, marc Lieberman

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