Question: Address all the questions in the preceding problem but assume that instead of a tax of $ 5 per dose the government offers a subsidy
Address all the questions in the preceding problem but assume that instead of a tax of $ 5 per dose the government offers a subsidy of $ 5 per unit.
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With an excise subsidy of 5 the marginal cost falls to 15 The monopolist wil... View full answer
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