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In: Economics

2 a.) Draw the demand, marginal revenue and marginal cost curve for a monopolist. Show the...

2

a.) Draw the demand, marginal revenue and marginal cost curve for a monopolist. Show the equilibrium price and quantity supplied and total profit. Show the equilibrium price and quantity supplied and total profit.

b.) Suppose new policy suggest the government can imposed a tax on monopolists equal to 25 percent of their economic profits, how this affect the output level of the firm? How about the price? Explain.

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Expert Solution

Rahul Sunny answered 2 years ago
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