Consider a discriminating monopolist that sells a product in two isolated geographical areas. The monopolist faces the following demand functions P1 = 100 - Q1 and P2 = 80 - Q2 and the cost function is C = 6(Q1 + Q2) The authorities in market 1 impose a tax of t per unit sold in market 1. How much tax revenue do the authorities in market 1 get?
Consider a discriminating monopolist that sells a product in two isolated geographical areas. The monopolist faces the following demand functions P1 = 100 - Q1 and P2 = 80 - Q2 and the cost function is C = 6(Q1 + Q2) The authorities in market 1 impose a tax of t per unit sold in market 1. How much tax revenue do the authorities in market 1 get?
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter9: Monopoly
Section: Chapter Questions
Problem 11SQ
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Consider a discriminating monopolist that sells a product in two isolated
geographical areas. The monopolist faces the following demand functions
P1 = 100 - Q1 and P2 = 80 - Q2
and the cost function is C = 6(Q1 + Q2)
The authorities in market 1 impose a tax of t per unit sold in market 1.
How much tax revenue do the authorities in market 1 get?
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