A monopolist faces a demand curve given by the following equation: P = $500 − 10Q, where Q equals quantity sold per day. Its marginal cost curve is MC = $100 per day. Assume that the firm faces no fixed cost.
and have the answers for most, but can someone give me a bump in the right direction for the follow up -
Now suppose a tax of $100 per unit is imposed. How will this affect the firm’s price?