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1 . If a monopolist produces q units, she can charge 1 0 0 - 4 q dollars / unit . The fixed cost of

1. If a monopolist produces q units, she can charge 100-4q dollars/unit. The fixed cost of production is $50, and the variable per-unit cost is $2. How can the monopolist maximize profits? If a sales tax of $2/unit must be paid by the monopolist, then would she increase or decrease production?

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