E202ProblemSet4.2

E202ProblemSet4.2 - profit-maximizing level of output be if...

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b. What would be the profit-maximizing number of bats if the firm’s fixed costs were not $60 per day but only $30? 4. How would Paducah’s profit-maximizing level of output be affected if the government imposed a tax of $10 per day on the company? What would Paducah’s
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Unformatted text preview: profit-maximizing level of output be if the government imposed a tax of $2 per bat instead? Why do these two taxes have such different effects? Q (bats/day) Total Revenue ($/day) Variable cost ($/day) Total cost ($/day) Profit ($/day) 5 10 15 20 25 30 35...
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This note was uploaded on 02/20/2012 for the course ECON 202 taught by Professor Brightwell during the Spring '08 term at Texas A&M.

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