Question
A monopolist has demand given by p = a - bq. Marginal cost is zero. a) Find the profit maximising quantity and price. b) An
A monopolist has demand given by p = a - bq. Marginal cost is zero.
a)Find the profit maximising quantity and price.
b)An ad valorem tax (t% of the price) is introduced. Find the profit maximising quantity and price.
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Macroeconomics
Authors: David C. Colander
10th edition
1259663043, 1259663048, 978-1259663048
