Question Threea) Suppose the average total cost (ATC) of a firm is given as4ATC = Q +- 2Find the output(Q) that minimizes marginal costb) Consider the following average revenue and cost functionsAR = 60 – 6QTC = 10Q² – 6Q + 30Suppose the government imposes a per-unit tax on output Q such that tax function is given asT = tQ wheret is the tax rate. Determine:i)The output that maximizes profitii)Tax rate t that maximizes tax revenueiii)Total tax Tiv)Maximum profit and price level

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Suppose the average total cost (ATC) of a firm is given as 4 ATC = Q +- Find the output(Q) that minimizes marginal cost

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Cost Of Production

Section: Chapter Questions

Problem 8PA

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