1. There are identical firms with cost function ?(?) = ? 2 +
100. The market demand is given by the following inverse demand
function ? = −0.02? + 220. The industry is a constant cost
industry. This is a competitive market where each firm takes the
price as given, with $5 per unit tax levied on the producers.
a) Calculate the firm’s MC, AC, AVC and supply ?(?). Graph the
cost curves and the supply on a graph.
b)...