Problem 4 Consider again Worked-Out Problem 14.2. The daily demand for pizza is Qd = 32,900 6001\

Problem 4 Consider again Worked-Out Problem 14.2. The daily demand for pizza is Qd 32,900 600P, where P is the price of pizza. The daily costs for a pizza company include $845 in avoidable fixed costs and variable costs equal to VC = 5Q + Q2/80, where Q is the number of pizzas produced each day. Marginal cost when producing Q pizzas is MC = 5 + Q/40. Recall that the price is $11.50, and the total quantity demanded is 26,000 pizzas per day. In a long-run equilibrium, each active firm produces 260 pizzas per day, its efficient scale. That means there are 100 active firms in the initial long-run equilibrium Suppose that starting at the initial long-run equilibrium with a price of $11.50 and 100 active firms, the government requires firms to pay a tax of $11.50 per pizza. What is the amount paid by buyers and received by sellers in the short run? What is the government revenue? What is the deadweight loss?