The demand for good X is given by x = 586 p-6. The good is sold by a monopolist with cost function C(x ) = 4 x and whose is aim is to maximize profit. The firm charges all customers the same price. If the government imposes a per unit tax equal to 4 dollars on the firm, what price will the monopolist charge consumers?

Economics For Today
10th Edition
ISBN:9781337613040
Author:Tucker
Publisher:Tucker
Chapter13: Antitrust And Regulation
Section: Chapter Questions
Problem 11SQP
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The demand for good X is given by x = 586 p-6. The
good is sold by a monopolist with cost function C(x
) = 4 x and whose is aim is to maximize profit. The firm
charges all customers the same price. If the government
imposes a per unit tax equal to 4 dollars on the firm,
what price will the monopolist charge consumers?
Transcribed Image Text:The demand for good X is given by x = 586 p-6. The good is sold by a monopolist with cost function C(x ) = 4 x and whose is aim is to maximize profit. The firm charges all customers the same price. If the government imposes a per unit tax equal to 4 dollars on the firm, what price will the monopolist charge consumers?
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