Multiple Choice
A monopolist faces a demand function given by Q = 50 -P and has a cost function C =3Q2+ 10Q +
100. If the government imposes a lump sum tax of $100, the monopoly will:
A) decrease its output.
B) cease production.
C) increase its price.
D) not modify its output.
Correct Answer:
Verified
Correct Answer:
Verified
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