Let C(q) 20 + 4q + 2q2 and demand P(Q) = 212 – 6Q a. Derive...

Let C(q) 20 + 4q + 2q2 and demand P(Q) = 212 – 6Q a. Derive the standard monopoly solution b. Derive monopoly profits as a function of the two kinds of taxes: solve for q as a function of the unit tax t and ad valorem tax a. Let t = 6.05 and let a = 0.1. Both taxes generate Q = 12.6 and a resulting consumer price of p = 136.4. Calculate i. Deadweight loss ii. Consumer surplus Producer surplus under the unit taxt Tax revenues under the unit tax t Producer surplus under the ad valorem tax a and compare to undert vi. Tax revenues under the ad valorem tax a and compare to under t

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Rahul Sunny answered 1 month ago

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