Question: A monopolist has a cost function given by C(y)=y 2 and faces a demand curve given by P(y) = 120-y. a) If you impose a

A monopolist has a cost function given by C(y)=y² and faces a demand curve given by P(y) = 120-y.

a) If you impose a lump sum tax of 100 on this monopolist, what will be the impact on output? Explain your calculations and the intuition behind your result.

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