Question

Q.2 A profit maximising monopolist faces an'inverse demand function described by the
equation ply) = 60-y and its total costs are given by cly) = 10y, where prices and costs are
measured in rupees. In the past, it was not taxed. Now it has to pay a tax of 6 rupees per unit
of output produced. After the tax, the monopolist will
options-
a-leave its price constant.
b-decrease its price by 6 rupees.
c-increase its price by 6 rupees.
d-increase its price by 2 rupees.
e-none of the other options.
f-increase its price by 3 rupees.
*
e​

Answer 1

Explanation:

the 3 rupees 8 to be in increased