If D (p) = 100/p and c(y) = y² a) What is the optimal level of output of the monopolist? b) What is the optimal level of output if there is a tax of $0.10 per unit paid by the monopolist? c) What is the optimal level of output if there is a tax of $0.10 per unit paid by the consumer? That is, the consumer pays Sp +0.10.

If D (p) = 100/p and c(y) = y² a) What is the optimal level of output of the monopolist? b) What is the optimal level of output if there is a tax of $0.10 per unit paid by the monopolist? c) What is the optimal level of output if there is a tax of $0.10 per unit paid by the consumer? That is, the consumer pays Sp +0.10.

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter12: Monopoly

Section: Chapter Questions

Problem 3DQ

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