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A monopolist has an inverse demand curve given by p(y)=12-y and a cost curve given by c(y)=y^2. a.What will be its profit-maximizing level of output?
A monopolist has an inverse demand curve given by p(y)=12-y and a cost curve given by c(y)=y^2.
a.What will be its profit-maximizing level of output?
b.Suppose the government decides to put a tax on this monopolist so that for each unit it sells, it must pay the government $2. What will be its output under this form of taxation?
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