4. A monopolist has the total cost function C(3Q2 and it faces the demand curve PQ 1200-Q. What is the profit maximizing price and output? What is total profit? What will the monopolist do if it faces a lump-sum tax of $50,000? Of $100,000? What price ceiling would maximize total surplus? What will the monopolist do if it must pay a tax of $40 per unit sold? What are its profits a. b. c. d. now?
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