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Now assume that the market for corn is a monopoly. The demand curve forcorn is given by P = 40 - Q whereas the marginal
Now assume that the market for corn is a monopoly. The demand curve forcorn is given by P = 40 - Q whereas the marginal (private) cost of production is MPC =10 + 2Q, where P is ($) price, Q is (bushels) quantity, MPC is the marginal private (i.e.,monopolist's) cost of production. If the government institutes a per unit tax of $9 per bushel of corn, what would be the monopoly price and quantity after the tax?
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