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Q31 The inverse market demand in and industry is p = 15 -2q. Firms in the industry use a technology with a fixed marginal cost.
Q31 The inverse market demand in and industry is p = 15 -2q. Firms in the industry use a technology with a fixed marginal cost. A firm producing y units incurs a total cost of c(y) = 3y.
Following a change of government a quantity tax of $2 per unit sold is introduced. Under this tax,
the monopoly would sell ______ units
The price would be ______
The consumer surplus would be ___________
The producer surplus would be ___________
The dead weight loss compared to full efficiency would be __________
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