Chapter 11, Problem 11.8P

a)

To determine

The ways in which the given cases such as a proportional tax on profits, a tax on each unit produced and a proportional tax on the gap between price and marginal cost affects the monopolist’s profit maximizing output choice is to be explained and also the tax affects the deadweight loss is to be determined.

b)

To determine

The graph for the given three cases is to be drawn.