Calculate the lump sum tax which would induce the monopoly

Reference no: EM133595708

Problem: Obtain the marginal revenue of this firm. Explain why it is different from that of a perfectly competitive firm. Calculate the lump sum tax which would induce this monopoly firm to exit the market. Calculate the incentive this monopoly would have to invest in a process innovation and explain. Assume this monopoly has found a way to divide their consumer base into two identifiable groups. Discuss the impact this would have on the prices consumers pay.

Reference no: EM133595708

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