What is competitive equilibrium with and without the tax

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In a perfectly competitive market for coal, consumers’ benefit function from consuming tons of coal , is given by B(Q)= -.25Q^2+240Q In addition, the coal producer has a cost function given by: ?C(Q) =.1Q^2 +2Q. Suppose the government imposes an ad valorem tax on coal producers of 7% of the sale price. What is the competitive equilibrium with and without the tax ?

Reference no: EM131238824

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