In a perfectly competitive market, all firms are identical there is free entry and exit, and an

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In a perfectly competitive market, all firms are identical there is free entry and exit, and an unlimited number of potential entrants. Now, the government starts collecting a specific tax t. What is the effect on the long-run equilibrium market quantity, market price, and the quantity for an individual firm?

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Managerial Economics and Strategy

ISBN: 978-0321566447

1st edition

Authors: Jeffrey M. Perloff, James A. Brander

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