The output of a monopoly

thelazyman

Junior Member
Joined
Jan 14, 2006
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58
Hi, need some help with this problem I have no idea how too start it

A per-unit tax t > 0 is levied on the output of a monopoly. The monopolist faces demand q = p^-E, E>1, and has constant average costs. Show that the monopolist will increase price by more than the amount of the per-unit tax.

Any help will be greatly appreciated.

Thanks
 
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