1 7. The following table shows the demand for water and cost conditions for the New South Springdale Water Utility, a puremonopoly.a. Complete the table.Quanity(gallons)MarginalRevenuePriceTotalMarginalCostsAverageTotal Costs(per gallon)RevenueProfit100101102$1.28$1.27$1.26$1.25$1.24$0.15$0.18$0.21$0.23$0.26$1.252$1.241$1.231$1.221$1.212103104b. What is true about the relationship between marginal revenue and marginal costs when profit is the greatest?c. Suppose the government imposed a tax on the firm of $103, which the firm had to pay even if it went out of busi-ness. What would be the profit-maximizing level of output? What would happen to profits? Would the firm stay inbusiness?Can you answer Part C please?

a) quantity in gallons price per gallon ($) total revenue($) marginal revenue($) marginal…

7. The following table shows the demand for water and cost conditions for the New South Springdale Water Utility monopoly. a. Complete the table. Quanity (gallons) Marginal Revenue Price Total Marginal Average Total Costs (per gallon) Revenue Costs 100 101 102 $1.28 $1.27 $1.26 $0.15 $0.18 $0.21 $1.252 $1.241 $1.231 103 104 $1.25 $1.24 $0.23 $0.26 $1.221 $1.212