What subsidy is necessary to induce the monopolist


Problem

A monopolist has a marginal cost of $22, and faces a demand curve of qd=280-7*P.

(i) Solve the monopolist's profit maximization problem.

(ii) What subsidy is necessary to induce the monopolist to produce the socially optimal level of output?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Macroeconomics: What subsidy is necessary to induce the monopolist
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