1.3 1.4 [8 points] Suppose the economic profits of the monopoly are taxed at rate t. Find the new equilibrium price} quantity, and profits, and compare to [1.1]. [8 points] Many firms in the US pay taxes on their profits, while also receiving subsidies from the government It initially seems contradic- tory to have one program take money from the firm while the other transfersmoney to the rm. Use your answers to [l.2]-[1.3] to ex- plain the circumstancesunder which a policy maker concerned with consumer welfare may prefer to combine two such programs