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Monopoly faces a linear demand curve

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Assume a monopoly faces a linear demand curve given by q = 45 - p, where q is quantity and p is consumer price. (This means that marginal revenue function is MR = 45 - 2q). Marginal cost, MC, of producing the output is $5. By how much does the consumer price go up if we levy a $2 tax on this good?

Reference no: EM131414074

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