Question 1

This is a Numeric Entry question / It is worth 3 points / You have 3 of 3 attempts remaining / There is no attempt penalty 01 Question (3 points) e See page 463 A monopolist faces an inverse demand curve given by p(y) - 36 - y, where y is the number of units and p is the price. The monopolist's cost function is given by c(y) = 2y2 V 1st attempt Part 1 (1 point) See Hint What is the monopolist's profit-maximizing level of output? units Part 2 (1 point) See Hint Suppose the government decides to put a tax on this monopolist so that for each unit it sells, it has to pay the government $6. What is the monopolist's profit-maximizing output at this level of taxation? units Part 3 (1 point) See Hint Suppose now that instead of the $6 tax per unit the government places a lump-sum tax of $20 on the monopolist's profits. What is its profit-maximizing output under this taxation scheme? units O OF 6 QUESTIONS COMPLETED SUBMIT ANSWER W X A