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InterBearing is a major manufacturer of Bearings. In the initial example, this producer of bearings is...

InterBearing is a major manufacturer of Bearings. In the initial example, this producer of bearings is a monopoly. The Total Cost Function is: TC = 1000 + 8Q & the Demand Function is Q = 21 – PQ

  1. What is the CS in the Perfectly Competitive Model?
  2. What is the Deadweight Loss in the Monopoly Model?
  3. If the Government added a $13 tax to each unit sold by the Monopolist, how much would CS Fall? How Much Tax Revenue would be raised?
  4. If the Government added a $13 tax to each unit sold in a Competitive Market, how much would CS Fall? How much Tax Revenue would be raised?

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Rahul Sunny answered 8 months ago
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