Question 3 Loti Brick, a monopolist firm, is known to have the following types of demand functions for different markets and one cost function: Q1 = 100 – P. Q2 = 80 – P, C = 6Q a. Find the profit of the firm b. Suppose that the government levy an excise tax (t) on good 1, Q1- What will be the profit of the firm in terms of t?
Question 3 Loti Brick, a monopolist firm, is known to have the following types of demand functions for different markets and one cost function: Q1 = 100 – P. Q2 = 80 – P, C = 6Q a. Find the profit of the firm b. Suppose that the government levy an excise tax (t) on good 1, Q1- What will be the profit of the firm in terms of t?
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter9: Monopoly
Section: Chapter Questions
Problem 11SQ
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Transcribed Image Text:Question 3
Loti Brick, a monopolist firm, is known to have the following types of demand
functions for different markets and one cost function:
Q1 = 100 – P,
Q2 = 80 – P,
C = 6Q
a. Find the profit of the firm
b. Suppose that the government levy an excise tax (7) on good 1, Q. What
will be the profit of the firm in terms of r?
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