1. You are the new AG for anti-trust at the US DOJ. You have been asked to study Shill Oil a monopoly seller of gasoline in Northern California. The market for gasoline is illustrated below. While Shill Oil can produce gasoline at a constant MC of 10, their capacity allows for a maximum production of 20 (in million barrels). nverse Demand P . 90 -30 39 10 0 15 17 20 26.67 30 (a) Assume first that Shill Oil acts as a price-taking (e.g. competitive) firm. Describe (using the letters) the CS, PS, and DWL that would result if the US imposes a sales tax of $20 per barrel on Shill Oil's gasoline. (b) Now assume instead that Shill Oil is a profit-maximizing monopolist. What is the CS, PS, and DWL under monopoly with the $20 per barrel sales tax