Question
If a monopolist set the unit price as p, her demand will be 100 - 0.25p. The variable cost is $60 per unit. a. How
If a monopolist set the unit price as p, her demand will be 100 - 0.25p. The variable cost is $60 per unit.
a. How can the monopolist maximize her profit?
b. If the monopolist must pay a sales tax of 5% of the selling price per unit, will she increase or decrease product (relative to the situation with no sales tax)?
Show the model in excel spreadsheet.
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Economics
Authors: David Colander
7th Edition
0073402869, 9780073402864
