A firm faces the following a average revenue curve : p= 120-0.02Q, where Q is the weekly production and p is the price,measured in Ngwee per unit.the firms cost function is given by C=60Q+25000. Assume that the the firm maximises profits. a) what is the level of production,price and profit per week.

b) sketch the monopolys equilibrium position showing price, output and total profits.

c)If the government decides to levy a tax of a certain fixed amount per unit on the product,sketch the new level of output,price and profit.