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Massive Products, Inc., is a monopolist whose cost of production is given by 10Q+Q2 (so its marginal cost curve-equivalently, its inverse supply curve - is given by 10 + 2Q).
Demand for Massive Products' massive products is Q = 200 - 2P
(a) What price will the monopolist charge, and what profits will the monopolist earn? What will the consumer surplus be?
(b) How will the monopolist's price and profits change if a tax of $15 per unit is imposed on the buyers of the product?
(c) What is the deadweight burden of the tax?
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