What will be the impact of imposition of unit tax on the firm’s long…

The correct answer is option 1: the firm’s long run supply curve will shift to the left and the firm now supplies same under of units of output at any given price

• A unit tax is a tax imposed on each unit of output produced, increasing the firm's cost of production per unit.
• In the long run, firms in perfect competition earn only normal profit (i.e., total revenue just covers total costs, including opportunity costs).
• When a unit tax is imposed, production costs increase, making some firms unprofitable at the previous equilibrium price.
• The long-run supply curve shifts to the left because, at any given price, the firm now supplies fewer units of output.