b001c1576c9b7deb7a8998a08162baca41b0d01ee052184710fb5495bfcfb293_ps7_1

.png

School

IIT Kanpur *

*We aren’t endorsed by this school

Course

211

Subject

Economics

Date

Nov 24, 2024

Type

png

Pages

1

Uploaded by JudgeFlag8168

Report
4. Taxing a monopoly.® A local cable provider faces demand ¢(p)=100p~2, and cost function C(q)= q3/ 2, Assume that this provider is the only firm offering cable in this town. (a) Find the equilibrium price, quantity, and profit for the cable provider. (b) Find the equilibrium price, quantity, and profit if the monopolist were to produce at the perfectly competitive equilibrium. (c) Can the local regulator impose a lump-sum tax on the cable provider to produce at the competitive equilibrium? Why or why not? If so, find the value of the tax 7. (d) Canthe local regulator impose a per-unit tax on the cable provider to produce at the competitive equilibrium? Why or why not? If so, find the value of the per-unit tax .
Discover more documents: Sign up today!
Unlock a world of knowledge! Explore tailored content for a richer learning experience. Here's what you'll get:
  • Access to all documents
  • Unlimited textbook solutions
  • 24/7 expert homework help