TC = 100 + 2Q^2
MC = 10 + 4Q
Q = 200 - P
P = 200 - Q
MR = 200 - 2Q
a) Tax of $15 per unit is imposed on buyers. Find new price the monopoly charges?
b) Find tax burden of the monopolist?
- OiyLv 51 month ago
MC= 10+4Q is wrong. In fact it's 4Q.
if the tax os imposed on demand, the MR equation would be 200-30Q