Need help with microeconomics

timer Asked: Oct 23rd, 2015

Question description

Suppose the monopoly has marginal costs MC = 2q and faces the demand curve p= 90 - q. A politician suggests to impose a per-unit tax of $1 on the monopolist. Calculate the monopoly price, output, profit, and deadweight loss in the absence and presence of the tax. Represent the problem graphically. What is your conclusion?

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