Question: I need help drawing this this question: Draw the graph for a monopoly earning a positive economic profit. Suppose the government institutes a per unit
I need help drawing this this question:
Draw the graph for a monopoly earning a positive economic profit. Suppose the government institutes a per unit tax on the good produced by the monopoly (consider the impact it will have on the cost curves). On the graph, show how this will affect the monopoly's profit maximizing level of output and the price charged by the monopoly.
Rubric:
Graph: Draw and Label Price Axis, Quantity Axis, Demand Curve, Marginal Revenue Curve, Marginal Cost Curve, Average Total Cost Curve, New Marginal Cost Curve, New Average Total Cost Curve, Qm, MR-MC, M1, Pm, Pm1, ATC, ATC1, Deadweight Loss, Total Revenue, Total Cost, Profit.
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