What are the optimal quantity and price given the tax

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Reference no: EM13869132

The monopolist from the previous problem now faces a specific tax of 20, τ = 20.

(a) What are the optimal quantity and price given the tax?

(b) What is the decrease in quantity given the tax? i. Compare to previous problem ii. Use the dQ/dτ formula

Reference no: EM13869132

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