Find the monopolys pro?t-maximizing output, as a function

Reference no: EM133394137

Question: A monopoly's demand curve is P=600 - 2Q and its cost to produce Q units of output is Q². The government also requires the monopoly to pay a tax of t per unit of output sold. Thus, the monopolist's total cost function is TC = Q²+ tQ, and the government's total tax revenue is tQ.

Find the monopoly's pro?t-maximizing output, as a function of t.
Write expression for the total tax revenue that the government collects from the monopolist.
What level of tax t maximizes the government's tax revenue?

Reference no: EM133394137

Questions Cloud

Types of networking hardware : List and describe the functions of common communications protocols and network standards used within CI.

Briefly explain what type of disease covid-19 is : Briefly explain what type of disease COVID-19 is and how it is transmitted - Your textbook is also an excellent resource to learn more about the mechanisms

What is the socially optimal level of output : What is the socially optimal level of output? Please enter a whole number, with no special characters like dollar signs, no space before or after or in between

Should be structured to gain the attention of organization : How should the findings be structured to gain the attention of your organization? Describe why you selected the structure you did?

Find the monopolys pro?t-maximizing output, as a function : Find the monopoly's pro?t-maximizing output, as a function of t. Write expression for the total tax revenue that the government collects from the monopolist

Which currency would the company have wanted to sell : Which currency would the company have wanted to sell forward to hedge its foreign exchange risk? Explain your reasoning

What about that good maximizes your utility : What about that good maximizes your utility and What would happen to your preferences for this good if the price rose

Explaining how it adds value to business strategy : Write a paragraph explaining how it adds value to business strategy. Write a second paragraph explaining a process for this service.

Comparing the before and after fsl2 scores in this study : Comparing the before and after FSL2 scores in this study shows that the subscales of "diabetic self-management," which comprise glucose control

User Account

All Pages