The marginal cost of a rental is 1 suppose the town


A local video rental monopolist faces the weekly demand function D(P) = 1000 - 50P. The marginal cost of a rental is $1. Suppose the town government places a $1 tax on all video rentals. What effect will the tax have on the price the monopolist charges? What will be the pass-through rate?

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Business Management: The marginal cost of a rental is 1 suppose the town
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