Crazy Horse is one of many identical competitive firms producing horse shoes. Its cost function is given by C(Q)
= Q²+ 4, where Q is the number of horse shoes produced.
i)Give an equation for and graph the horse shoe industry long run supply curve.
ii)Suppose the demand for horse shoes is given by Q = D(p)= 5000 - 500p. Graph the demand curve. Find the equilibrium price and quantity of horse shoes.
iii)Bowing to pressure from the horse ranchers lobby, the government decides to impose a $1 per unit tax on horse shoes. What is the effect of the tax on the price paid by consumers and the equilibrium quantity?

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The Answer of Crazy Horse is one of many identical competitive firms producing horse shoes. Its cost function is given by C(Q) = Q²+ 4, where Q is the number of horse shoes produced. i)Give an equation for and graph the horse shoe industry long run supply curve. ii)Suppose the demand for horse shoes is given by Q = D(p)= 5000 - 500p. Graph the demand curve. Find the equilibrium price and quantity of horse shoes. iii)Bowing to pressure from the horse ranchers lobby, the government decides to impose a $1 per unit tax on horse shoes. What is the effect of the tax on the price paid by consumers and the equilibrium quantity?

Crazy Horse Is One of Many Identical Competitive Firms Producing