Mr.C asked in Social ScienceEconomics · 1 month ago

Economics Monopoly?

MR= MC

TC = 100 + 2Q^2

MC = 10 + 4Q

Demand:

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?

1 Answer

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  • Oiy
    Lv 5
    1 month ago

    MC= 10+4Q is wrong. In fact it's 4Q.

    MC=MR, 4Q=200-2Q,Q=200/6=33.33.

    if the tax os imposed on demand, the MR equation would be 200-30Q

    MC=MR, 200-30Q=4Q,Q=200/34=5.88

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