What e§ect does an excise tax have on a competitive market

Reference no: EM133614587

Problem: Suppose the government imposes an excise tax of Öfty percent on this good ó when a consumer pays a price P for the good, the Örm receives only P=2. Find the long-run equilibrium price, quantity per Örm, market quantity, and proÖt level. What e§ect does an excise tax have on a competitive market?

Reference no: EM133614587

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