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Recalling the information from the Botox Patent Monopoly application, inverse demand was p = 775 3750, marginal revenue was MR = 775 - 750G, marginal
Recalling the information from the "Botox Patent Monopoly" application, inverse demand was p = 775 3750, marginal revenue was MR = 775 - 750G, marginal cost was MC = 25, a constant, and quantity is in millions of units. What would happen to the monopoly-optimal price and quantity if the government had collected a specic tax of $50 per vial of Botox? The monopolyoptimal price would be $ 426.25 . (round your answer to two decimal places) The monopolyoptimal quantity would be 0.93 million units. (round your answer to two decimal places) What welfare effects would such a tax have? The deadweight loss (DWL) is $|:| million. {round your answer to two decimal places)
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