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A profit maximizing monopoly faces an inverse demand function given by p(y) = 40 - y and its total costs are c(y) = 7y. a.Assuming

A profit maximizing monopoly faces an inverse demand function given by p(y) = 40 - y and its total costs are c(y) = 7y.

a.Assuming the monopolist is maximizing profits, how high will high profits be?

b.The government imposes a tax of $6 on the monopolist. By how much will he raise his price after the tax is imposed?

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