A monopolist is facing the following demand schedule Pa24-30 That is, Q0 implies Pe24, then Qefimplies P21, and Q-2 entals P18, and so one. Fixed costs will be neglected in this analysis. The marginal cost is constant and equal to 3 for every unit produced. Determina (a) The quantity produced and the amount of maximum profits (b) Price and quantity to yield the efficient solution (c) Redo (a) when we impose a sales tax equal to 4 (per unit sold).
