Economics: Tax Revenue Economists* have found that if cigarettes are taxed at rate t, then cigarette sales will be S(t) = (64 - 51.26t)/(1+t) (billion dollars annually, before taxes).
a. Use a graphing calculator to find the tax rate t that maximizes revenue to the government.
b. Multiply this tax rate times $4 (a typical pre-tax price of a pack of cigarettes) to find the actual tax per pack.
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