Answer Happy

A good is produced in a perfectly competitive market. Assume there are only 4 firms in the industry and they have the following cost functions: 2 C1(q) = q + q + 2 C2(q) 2 C3(q) = q + 5q + 6 = 2q² + 3q + 4 2 = 2q² + 7q + 8 C4(q) Further suppose that there is a representative consumer with utility function u(x, y) = x + ln(y) a. Solve for the market demand function for good x given good y is $1 and the consumer's income is $30. If you can't solve for this, specify a demand function for the representative consumer in order to solve the rest of the problem. b. Solve for each firm's supply function as well as the industry supply function. c. Solve for the equilibrium price and quantity. d. What is the quantity produced under a $1 sales tax?