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A monopolist faces the following demand curve, marginal revenue curve, total cost curve and marginal cost curve for its product: 

Q=200-2P , MR=100-Q  , TC=5Q  , MC=5

Suppose that a tax of $5 for each unit produces is imposed by state government. What is the profit maximizing level of output?

a. 0

b. 90

c. 95

d. 100

e. None of the above

Business Economics, Economics

  • Category:- Business Economics
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