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Step 1: Derive the two firms' total cost functions for the case in which there is no tax imposed on the taxi industry.
Step 2: Derive the two firms' profit functions for the case in which there is no tax imposed on the taxi industry.
Step 3: Derive the two firms' best response functions for the case in which there is no tax imposed on the taxi industry.
Step 4: Derive the long-run equilibrium firm quantities, market price, firm profits, and consumer surplus. for the case in which there is no tax imposed on the taxi industry.
Step 5: Repeat steps 1 to 4 for the case in which a $2.40 tax per trip is imposed on the taxi industry.
Step 6: Derive the long-run equilibrium firm quantities, market price, firm profits. and consumer surplus. for the case in which a $50,000 per day tax is imposed on the taxi industry.
Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..
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