Q.No.2. A Monopolist faces the following demand and cost function, P= 15 + % Q , C= 19.75 Q²– 70 Q + 10 I. Find his profit maximizing price and output. II. If government imposes an excise tax of Rs. 5 per unit on the monopolist output, then find his maximizing output and price. III. If government pays a subsidy of Rs. 5 per unit on the monopolists output, then find his maximizing output and price.
Q.No.2. A Monopolist faces the following demand and cost function, P= 15 + % Q , C= 19.75 Q²– 70 Q + 10 I. Find his profit maximizing price and output. II. If government imposes an excise tax of Rs. 5 per unit on the monopolist output, then find his maximizing output and price. III. If government pays a subsidy of Rs. 5 per unit on the monopolists output, then find his maximizing output and price.
Chapter9: Monopoly
Section: Chapter Questions
Problem 13SQ
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