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I am stuck with a simple problem in DSE paper 2016. Any help is highly appreciated.
The market for widgets has the demand function Q=100-10P, where Q is quantity demanded and P id the price in rupees. There are 10 price taking firms in the market, each having a cost function c(q)=1/2*q^2, where q is the firm's own output. There is no other entry. Suppose the government imposes a tax of RS 2 from the seller per unit of widgets. What is the equilibrium price?
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