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Use the implicit function theorem to calculate the derivative of the optimal quantity with respect to the tax rate. Note: you have to answer this
Use the implicit function theorem to calculate the derivative of the optimal quantity with respect to the tax rate. Note: you have to answer this question without making use of your answer to question 5. That is, you have to calculate that derivative without calculating the optimal quantity. A monopolist with a production cost C I (C + 6Q (where t is the perunit tax rate the government imposes on the monopolist and C is a positive constant} operates E in a market described by the inverse demand function P = Q , where E is a constant
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