A. Determine the maximum profit and the corresponding price and quantity for a monopolist whose demand functions are P=20-.5q and total costs are C=30+5q.

B. Assume an increase in oil prices increases the variable cost per unit by 3 dollars. What are the implications for the price, output and profit of the monopolist? Is raising the price by 3 optimal?

C. Assume an increase in property taxes of $20. Determine the price, output and profits of the firm.