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UzCartel is a monopolist whose cost of production is given by TC=5Q+Q^2 (so its marginal cost curve is given by MC=5+2Q). Demand for UzCartels products
UzCartel is a monopolist whose cost of production is given by TC=5Q+Q^2 (so its marginal cost curve is given by MC=5+2Q). Demand for UzCartels products is Q=100-P. What price will the monopolist charge, and what profits will the monopolist earn? What will the consumer surplus be? (10 points) How will the monopolists price and profits change if a tax of $10 per unit is imposed on the buyers of the product? (8 points) What is the excess burden of the tax? (7 points)
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