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 . a . The monopoly firm in this case has a demand curve with the formula P = $500 - 10Q, where Q is the daily amount sold. The marginal cost curve for the company is MC = $100 per unit. a company will produce 100 units.  To find the quantity the firm will produce, we need to find the point at which marginal cost and marginal revenue are equal. The curve of marginal revenue is given by MR = P - 10, P is for price, and Q is for quantity. So, at a quantity of 100, the marginal revenue is $400 - 10, or $390. The marginal cost is $100. So, the production of the firm will be 100 units.  b . In a monopoly market, there is only one firm that produces a product or service without a comparable one. The marginal revenue curve is below the downward-sloping demand curve for the monopoly firm's product. The monopoly firm faces no competition, so it can charge whatever price it wants. The only constraint on the firm's price is that it must be high enough to cover the firm's marginal cost.  The monopoly firm in this case has a demand curve with the formula P = $500 - 10Q, where Q is the daily volume of sales. The marginal cost curve for the company is MC = $100 per unit. The firm will produce 100 units and charge $400 per unit. To find the price, we need to find the point on the demand curve where Q = 100. So, P = $500 - 10(100), or $400.  c . locate the region between the pricing and marginal cost curves in order to determine the firm's profit. The marginal cost curve is given by MC = $100 and the price curve is given by P = $500 - 10Q. So, the firm's profit is given by P*Q - MC*Q = $500Q - $100Q - $100Q = $30,000.  d . The tax will increase the firm's price by $1,000 per day because the firm will pass the tax on to consumers in the form of higher prices. The tax will not affect the firm's quantity because the firm is a monopoly and faces no competition.  e. The tax won't have an impact on the company's output because the firm is a monopoly and faces no competition. The only constraint on the firm's output is that it must be high enough to cover the firm's marginal cost  f. The tax will reduce the firm's profit by $1,000 per day because the firm will have to pay the tax. The tax will not affect the firm's quantity because the firm is a monopoly and faces no competition.  g . The tax will increase the firm's price by $100 per unit because the firm will pass the tax on to consumers in the form of higher prices. The tax will not affect the firm's quantity because the firm is a monopoly and faces no competition.

 h. The tax will reduce the firm's profit maximizing output by 10 units per day because the firm will have to pay the tax. The tax will not affect the firm's quantity because the firm is a monopoly and faces no competition.  i. The tax will lower the company's profit by $1,000 per day because the firm will have to pay the tax. The tax will not affect the firm's quantity because the firm is a monopoly and faces no competition. Plain answer: a. The production will be100 units b. The cost will be $400 per unit. To find the price, we need to find the point on the demand curve where Q = 100. So, P = $500 - 10(100), or $400. c. The firm will make a profit of $30,000 per day. d. The tax will rise the cost of the business by $1,000 every day e. The levy won't have an impact on the company's daily productivity. f. The tax will take $1,000 every day out of the company's profit. g. The tax will result in a $100 per unit price hike at the company. h. The tax will reduce the firm's profit-maximizing output by 10 units per day. i. The tax will take $1,000 every day out of the company's profit. References: Khan Academy. (2019, March 4). Perfect competition | Microeconomics | Khan Academy [Video]. YouTube Khan Academy. (2019, March 12). Long-run economic profit for perfectly competitive firms | Microeconomics | Khan Academy [Video]. YouTube

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