b) Consider the following average revenue and cost functions AR = 60 – 6Q TC = 10Q2 – 6Q + 30 Suppose the government imposes a per-unit tax on output Q such that tax function is given as T = tQ where...

Extracted text: b) Consider the following average revenue and cost functions AR = 60 – 6Q TC = 10Q2 – 6Q + 30 Suppose the government imposes a per-unit tax on output Q such that tax function is given as T = tQ where t is the tax rate. Determine: i) The output that maximizes profit ii) Tax rate t that maximizes tax revenue .... iii) Total tax T iv) Maximum profit and price level