題組內容

1. Consider a monopolist facing the following market demand function: $$Q = 120 - 2P$$
where Q denotes quantity demanded and P denotes price. The firm's total cost function is given by: $$TC = 20Q + 100$$ Answer the following questions:

(c) Suppose the government imposes a per-unit tax of \( t = 5 \) on the monopolist's output. Determine the new profit-maximizing price and quantity, and compare the new price and quantity with the pre-tax equilibrium. (10%)