# The government imposes a specific tax of t = 2 on laundry. Acme Laundrys pre-tax cost function is C(q) = 10 + 10q + q 2 . How much should the firm produce to maximize its after-tax profit if the market price is p? How much does it produce if p = 50?

Chapter 8, Exerise Questions #14

The government imposes a specific tax of t = 2 on laundry. Acme Laundry’s pre-tax cost function is C(q) = 10 + 10q + q^{2}. How much should the firm produce to maximize its after-tax profit if the market price is p? How much does it produce if p = 50?

## This problem has been solved!

Do you need an answer to a question different from the above? Ask your question!

**Related Book For**

## Microeconomics Theory And Applications With Calculus

4th Edition

Authors: Jeffrey M. Perloff

ISBN: 978-0134167381