Question
A monopoly firm has Demand: P = 20 - 2y Cost: C = y 2 + 5y Tax by t per unit output imposed. Find
A monopoly firm has
Demand: P = 20 - 2y
Cost: C = y2 + 5y Tax by t per unit output imposed. Find
(a) Equilibrium price and quantity and show that the production quantity is decreasing over t.
(b) Maximum tax revenue and the value of tax to be imposed.
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Microeconomics
Authors: Roger A. Arnold
12th Edition
1285738306, 978-1285738307
