Analysis of Firm Production and Market Equilibrium Assignment

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Assignment Task

Questions

  1. How many units of good 1 and good 2 does an individual firm supply?

  2. What is the aggregate supply of good?

  3. What is the aggregate supply of good That is, how many units of good do all 1000 firms supply together?

  4. What is the quantity traded in equilibrium What is the price?

  5. What is the government tax revenue?

  6. What trade-off does the government face?

  7. Which per-unit tax maximizes the governmen tax revenue? 

 

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