Microeconomics 6th Edition by Robert Hall, Shirley Kuiper, Marc Lieberman

Exercise 6

Draw a diagram for a perfectly competitive firm in long-run equilibrium. Include only the demand curve facing the firm and its LRATC curve. Then show the impact of an excise tax (some number of dollars per unit)imposed by the government on this firm only but not on any other firm in the market. Can we say what this firm will do in the long run?