Microeconomics: Theory and Applications with Calculus, 2e ...

The government revenue from the tax is: GR=(180-3.33τ)×τ. To maximize the revenue generated, we take the derivative of the GR function with respect to the tax and set equal to zero: dGR/dτ=180-6.67τ=0. Thus the revenue-maximizing tax rate is τ=$27. Topic: Effects of a Sales Tax ................
................

In order to avoid copyright disputes, this page is only a partial summary.