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Unformatted text preview: t per unit. Write down the new cost function for the monopoly and find the new profitmaximizing price and output combination, P ** and Q **, in terms of the parameters a , c and t . (c) How much of the $ t perunit tax was the monopolist able to pass on to consumers in terms of a higher perunit price? ( Hint : Take the derivative of the new price P ** with respect to the tax t .)...
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This note was uploaded on 10/26/2010 for the course ECONOMICS ECON 201 taught by Professor Dr.shomubanerjee during the Summer '07 term at Emory.
 Summer '07
 Dr.ShomuBanerjee
 Microeconomics, Monopoly

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