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