Massive Products, Inc., is a monopolist whose cost of production is given by 10Q+Q^2 which means its MC=10+2Q. Demand 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 loss of the tax?