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3} Suppose that a monopolistic seller of designer handbags faces the following inverse demand curve: P=100 q . The seller can produce handbags fur a
3} Suppose that a monopolistic seller of designer handbags faces the following inverse demand curve: P=100 q . The seller can produce handbags fur a constant marginal and average total cost of $20. a. [10 p15.) Calculate the profitmaximizing price for this seller b. {10 pts.) Suppose the government levies a 56 tax per unit on sellers of hand bags. Calculate how this tax will affect the price the monopolist charges its customers. c. {10:315.} who bears the burden of this tax
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