Find the monopolys pro?t-maximizing output, as a function

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Reference no: EM133394137

Question: A monopoly's demand curve is P=600 - 2Q and its cost to produce Q units of output is Q². The government also requires the monopoly to pay a tax of t per unit of output sold. Thus, the monopolist's total cost function is TC = Q²+ tQ, and the government's total tax revenue is tQ.

Find the monopoly's pro?t-maximizing output, as a function of t.
Write expression for the total tax revenue that the government collects from the monopolist.
What level of tax t maximizes the government's tax revenue?

Reference no: EM133394137

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