Monopoly market outcome and the economic incidence

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Assume that the financial services industry is a monopoly, serviced by just one firm. The monopolist faces a levy imposed by the government and incurs marginal costs as in a competitive market (but without new firms entering/exiting the industry). Analyse the impact of the fee levied on the monopoly market outcome and the economic incidence of the fee in the long run.

Reference no: EM131071203

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