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A non-discriminating profit-maximizing monopoly's cost function is c(q)=2+6q. The aggregate demand function from its customers is q=30-3p.Initially, the monopoly does not have to pay any
A non-discriminating profit-maximizing monopoly's cost function is c(q)=2+6q. The aggregate demand function from its customers is q=30-3p.Initially, the monopoly does not have to pay any tax.By how much will the price the monopoly charge increase if the monopoly has to pay a quantity tax of $1 per unit produced?
*PLEASE SHOW WORK****
a. None of the other answers.
b. The price will increase by $2.
c. The price will increase by $1.
d. The price will increase by $1.5.
e. The price will increase by $0.5.
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