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Massive Products, Inc., is a monopolist whose cost of production is 10Q + 2Q2 (so its marginal cost curveequivalently, its inverse supply curveis given by
Massive Products, Inc., is a monopolist whose cost of production is 10Q + 2Q2 (so its marginal cost curveequivalently, its inverse supply curveis given by 10 + 4Q) Demand for Massive Products massive products is Q = 200 P.
1. What price will the monopolist charge, and what profits will the monopolist earn? What will consumer surplus be?
2. How will the monopolists price and profits change if a tax of $15 per unit is imposed on the buyers of the product?
3. What is the deadweight burden of the tax?
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