Answer to Question #40775 in Microeconomics for Alishia

Question

if the inverse demand curve is p=120-Q and the marginal cost is constant at 10, how does charging the monopoly a specific tax of r= 10 per unit affect the monopoly optimum and the welfare of consumers, the monopoly, and society ( where society's welfare includes the tax revenue)? What is the incidence of the tax on consumers? (15 marks)