Profit maximization under perfect competition?

Question

A perfectly competitive industry is initially in long-run equilibrium. Price is P0 = $3 and industry output is Q0 = 250 units. This is a constant costs industry consisting of n0 = 50 identical firms with the usual U-shaped long-run average cost curves. Provide a pair of fully labelled diagrams showing The Typical Firm and Industry Supply and Demand. Illustrate how the industry will respond to the introduction of a per-unit tax of t = $3.

Thanks for your help

Answer 1

Yuo must read Karl Marx