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 ...

The firms aftertax profit is To find the profitmaximizing output level ...

The government imposes a specific tax of t = 2 on laundry. Acme Laundrys pre-tax cost function

Question:

The government imposes a specific tax of t = 2 on laundry. Acme Laundry’s pre-tax cost function is C(q) = 10 + 10q + q². 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?