Asymmetric information increases the economic value that an agreement between two parties creates

Assume the government decides to impose a per-unit tax on a good produced in a perfectly competitive market

a. Graphically illustrate the short-run effects of the tax on the cost conditions faced by a representative firm in the market. b. Explain the adjustment process to long-run equilibrium in the market. What has happened to long-run equilibrium price and output as a result of the tax? What has happened to the number of firms in the market? Why?

Which of the following represents why private production tends to be more efficient then government production?

What will be an ideal response?