Assume that a pfizer has a linear demand curve for lipitor, Business Economics

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Assume that a pfizer has a linear demand curve for lipitor

Assume that a Pfizer has a linear demand curve for Lipitor, a constant marginal cost curve (i.e. the marginal cost is a constant), and is a monopolist in this market.

Graph this firm’s optimal output choice before and after per unit excise tax is placed on the output. Does the equilibrium price rise by as much as the tax?

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Business Economics: Assume that a pfizer has a linear demand curve for lipitor

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Business Economics: Assume that a pfizer has a linear demand curve for lipitor

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