In the linear example in panel a of Figure 11.3, how does charging the monopoly a specific

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In the linear example in panel a of Figure 11.3, how does charging the monopoly a specific tax of t = 8 per unit affect the monopoly optimum and the welfare of consumers, the monopoly, and society (where society’s welfare includes the tax revenue)?

What is the incidence of the tax on consumers?

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Microeconomics

ISBN: 9780133456912

7th Edition

Authors: Jeffrey M. Perloff

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