What will be its output under this form of taxation

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A monopolist has an inverse demand curve given by p(y) = 12 - y and a cost curve given by c(y) = y².

(a) What will be its profit maximizing level of output?

(b) Suppose the government decides to put a tax on this monopolist so that each unit it sells has to pay the government $2. What will be its output under this form of taxation?

(c) Suppose now that the government decides to put a lump sum tax of $10 on the profits of this monopolist. What will be its output?

Reference no: EM131006091

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