Monopoly
Posted by Devika on May 29, 2013; 12:08pm
URL: http://discussion-forum.276.s1.nabble.com/Monopoly-tp7581456.html
Please explain!! With steps
A monopolist has cost function c(y) = y so that its marginal cost is
constant at Re. 1 per unit. It faces the following demand curve
D (p) =0 if p > 20
=100/p if p<=20
Find the profit maximizing level of output if the government imposes a
per unit tax of Re. 1 per unit, and also the dead-weight loss from the
tax.
How to calculate the MR in this case?