Consider a monopolist setting a single price to all consumer that faces a demand curve of P
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Question:
Consider a monopolist setting a single price to all consumer that faces a demand curve of P = 30 - q, where P is price and q is the quantity sold. The monopolist has a marginal cost curve of MC = g. The government implements a per-unit tax of $9 per unit, to be paid for by the monopolist. What is the resulting dead weight loss?
a.24
b.32
c.48
d.64
e.none
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