A monopoly firm faces a demand curve given by the following equation: P = $500 10Q, where Q equals quantity sold per day. Its marginal cost curve is MC = $100 per day. Assume that the firm faces no fixed cost. You may wish to arrive at the answers mathematically, or by using a graph (the graph is not required to be presented), either way, please provide a brief description of how you arrived at your results.

e) How would the $1,000 per day tax its output per day?

Will the output drop from 20 to 15? am I correct?