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Please use typing instead of handwriting. Please write clearly if you cannot type. Thank you! ? Suppose that a monopolistic seller of designer handbags faces

Please use typing instead of handwriting. Please write clearly if you cannot type. Thank you!

?

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Suppose that a monopolistic seller of designer handbags faces the following inverse demand curve: 2 P: . 50 5Q The seller can produce handbags for a constant marginal and average total cost of $10. (a) Calculate the prot-maximizmg price for this seller. (b) Suppose the government levies a $4 tax per unit on sellers of handbags. Calculate how this tax will aect the price the monopolist charges its customers. (c) Briey.r discuss how the customers and the monopolist bear the burden of this tax

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