a) If the MC is $8/unit, find the equilibrium price and quantity under perfect competition and Monopoly. b) If the government places a tax of $2/unit on production in each case, find the new price and quantity under perfect competition and Monopoly. c) Comment on the incidence of the tax in each case.

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Monopoly Market

When a company and its products dominate a sector or an industry, it is termed a monopoly. When a firm and its products control a market, then it is called a monopoly.