How will that affect its output and pricing decisions

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1. Say you place a lump-sum tax (a tax that is treated as a fixed cost) on a monopolist. How will that affect its output and pricing decisions?

2. A monopolist is selling fish. But if the fish don't sell, they rot. What will be the likely elasticity at the point on the demand curve at which the monopolist sets the price? (Difficult)

Reference no: EM131401891

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