Question: ( 5 pt . ) Assume that the demand and cost data above is for the N . Y . Yankees and Major League Baseball

(5

.)

Assume that the demand and cost data above is for the N

.

.

Yankees and Major League Baseball owners impose a lump sum tax of $

4

million dollars to help equalize talent across high revenue and low revenue teams. How will the tax affect your profit maximizing output and the price you charge? How will the tax affect your profits? Explain.

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