Question
The monopolist Mortimer Mouse has a marginal cost of 4q and faces a demand of q = 100 - 2p for the candy he sells.
The monopolist Mortimer Mouse has a marginal cost of 4q and faces a demand of q = 100 - 2p for the candy he sells. If the government taxes him $10 per unit of candy, what optimal price does Mortimer Mouse set?
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Economics
Authors: Campbell R. McConnell, Stanley L. Brue, Sean M. Flynn
18th edition
978-0077413798, 0-07-336880-6, 77413792, 978-0-07-33688, 978-0073375694
