Question: Consider a monopolist operating in a market whose demand is q=100 - 2p. The cost is given by C(q) = cq. Calculate the price effect

Consider a monopolist operating in a market whose demand is q=100 - 2p. The cost is given by C(q) = cq. Calculate the price effect of creating a tax equal to "t" on the monopolist's output. Does the consumer price increase by more or less than "t"? Is it possible to generalize this result?

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