In problem, suppose the city imposes a sales tax of $6 per widget. a. In the short

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In problem, suppose the city imposes a sales tax of $6 per widget.

a. In the short run, what is the new price of a widget?
b. In the long run, what is the new price of a widget?
c. In the long run, how many firms leave theindustry?

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Price theory and applications

ISBN: 978-0538746458

8th edition

Authors: Steven E landsburg

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Question Posted: Jan 24, 2013 08:17 AM

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In problem, suppose the city imposes a sales tax of $6 per widget. a. In the short

Question:

Industry-Wide Demand Price Firm's Marginal Cost Curve Quantity Marginal Cost $2 Quantity 500 400 300 200 100 $2 4 12 12 25 10 15 15

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a Original equilibrium is at quantity 300 New equilibrium must be at ...View the full answer

Price theory and applications

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