(Answered) A sales tax of 1 per unit of output is placed on a

Economics

A sales tax of $1 per unit of output is placed on a particular firm whose product sells for $5 in a competitive industry with many firms.

a. How will this tax affect the cost curves for the firm?

b. What will happen to the firm"s price, output, and profit?

c. Will there be entry or exit in the industry?

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