SOLUTION: A monopoly firm has Demand: P = 20 - 2y Cost: C = y2 + 5y Tax by t per unit output imposed. Find (a) Equilibrium price and quantity and show that the production quantity is decreas

Question 1162526: A monopoly firm has Demand: P = 20 - 2y Cost: C = y2 + 5y Tax by t per unit output imposed. Find (a) Equilibrium price and quantity and show that the production quantity is decreasing over t . (b) Maximum tax revenue and the value of tax to be imposed.
Answer by ikleyn(52864) (Show Source): You can put this solution on YOUR website!
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Part (b) makes no sense.

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