2. We have a monopolistic firm with the following functions: P(q) = 20 - 3q MC = 2 + 2q MD(q) = 3 What is the optimal ta
Posted: Wed Jul 06, 2022 6:19 am
2. We have a monopolistic firm with the following functions: P(q) = 20 - 3q MC = 2 + 2q MD(q) = 3 What is the optimal tax rate for society and how far off is the Pigou- vian tax. Note: a graphical answer is acceptable if the algebra is too difficult