What is the deadweight loss of the tax

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Reference no: EM131094635

Massive Products, Inc., is a monopolist whose cost of production is given by 10Q+Q^2 which means its MC=10+2Q. Demand is Q=200-2P.

a. What price will the monopolist charge, and what profits will the monopolist earn? What will the consumer surplus be?

b. How will the monopolist’s price and profits change if a tax of $15 per unit is imposed on the buyers of the product?

c. What is the deadweight loss of the tax?

Reference no: EM131094635

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