Essay
Consider a monopoly with inverse demand function p = 90 - 10y and cost function c (y)= 10y.
i)Find the profit maximizing output and price, and calculate the monopolist's profits.
ii)Now, suppose the government imposes a per unit tax t = 20. Find the new price, output and profits.
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i)y = 4, p = 50, pro...View Answer
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