The demand for good X is given by x = 691-7 p. The good is sold by a monopolist with cost function C(x) = x^2/5 and whose aim is to maximize profit. The firm charges all customers the same price. Derive the per - unit tax which maximizes the government's (tax) revenue, call it t*. Then enter below the sale tax which results in firm selling the same quantity as the amount it sells under t

The demand for good X is given by x = 691-7 p. The good is sold by a monopolist with cost function C(x) = x^2/5 and whose aim is to maximize profit. The firm charges all customers the same price. Derive the per - unit tax which maximizes the government's (tax) revenue, call it t*. Then enter below the sale tax which results in firm selling the same quantity as the amount it sells under t

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter9: Monopoly

Section: Chapter Questions

Problem 7SQ

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