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(3pts.) Monopolist with tax: Suppose the firm faces the following inverse demand function and total cost function P=Q TC=Q++tQ where t is the per unit
(3pts.) Monopolist with tax: Suppose the firm faces the following inverse demand function and total cost function P=Q TC=Q++tQ where t is the per unit tax. Compute for the level of Q that maximizes profit for the firm. What restriction(s) on the parameters will ensure production of positive quantity? (3pts.) Suppose a baker incurs the cost C(q)=q312q2+36q+9700 in producing q number of breads. a) How many breads should this firm produce to minimize its cost? b) How much is the minimum cost? c) Verify that the minimization condition is satisfied with this choice (3pts.) Monopolist with tax: Suppose the firm faces the following inverse demand function and total cost function P=Q TC=Q++tQ where t is the per unit tax. Compute for the level of Q that maximizes profit for the firm. What restriction(s) on the parameters will ensure production of positive quantity? (3pts.) Suppose a baker incurs the cost C(q)=q312q2+36q+9700 in producing q number of breads. a) How many breads should this firm produce to minimize its cost? b) How much is the minimum cost? c) Verify that the minimization condition is satisfied with this choice
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