Answered: Let the slope of MR curve of a…

Let the slope of MR curve of a monopolist be -1/2. MC=5. After a tax at the rate t=5 per unit of output how much amount of output falls? a. 10 b. -10 c. 5 d. -5

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Let the slope of MR curve of a monopolist be -1/2.
MC=5. After a tax at the rate t=5 per unit of output
how much amount of output falls?
a. 10
b. -10
c. 5
d. -5
Can someone give step-by-step method to solve this
question?

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