12 May DID THE TAX HAVE ANY AFFECT ON TOTAL OUTPUT PRODUCED?
The competitive sword manufacturing industry in Westeros has 10,000 identical firms. For each firm in the industry, the long run cost of producing y units of output is c(y) = 100 + y^2 if y > 0 and c(y) = 0 if y = 0. The government imposes a lump sum tax of $300 on each firm in the industry. Firms can only avoid this sword tax by going out of business. We can assume free entry and exit into this industry. Furthermore demand is vertical; the knights of Westeros need their swords!(a) What is the price and output per firm in the before-tax world and in after tax word of Westeros? (5 marks)(b) Did the tax have any affect on total output produced? How were prices and the number of firms affected? Be specific. Finally, are the sword manufacturing firms that are producing after the introduction of the tax worse off? (10 marks)The competitive sword manufacturing industry in Westeros has 10,000 identical firms. For each firm in the industry, the long run cost of producing y units of output is c(y) = 100 + y^2 if y > 0 and c(y) = 0 if y = 0. The government imposes a lump sum tax of $300 on each firm in the industry. Firms can only avoid this sword tax by going out of business. We can assume free entry and exit into this industry. Furthermore demand is vertical; the knights of Westeros need their swords!(a) What is the price and output per firm in the before-tax world and in after tax word of Westeros? (5 marks)(b) Did the tax have any affect on total output produced? How were prices and the number of firms affected? Be specific. Finally, are the sword manufacturing firms that are producing after the introduction of the tax worse off? (10 marks)
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.