I need help with these questions. Please label the answers to each question (1a,1b..)

I. Consider the following simplied scenario. Suppose that the Australian Football League (for short, AFL) has exclusive rights to organize the AFL Grand Final, which determines the winners of the season. The AFL decides that the next Grand Final will be hosted at the Melbourne Cricket Ground stadium (MCG). The contractual agreements are such that the AFL has no xed costs for organizing the game, but it must pay a marginal cost MC of $40 per seat to the owners of the MCG. Suppose that two types of tickets will be sold for the game: concession and full fare. Based on any ofcial document that attests to their age, children and pensioners qualify to purchase concession tickets that offer a discounted price; everyone else pays the lll fare. The demand for full-fare tickets is QF(P) = 160 2P. The demand for concession tickets is Qc(P) = 140 2P. 1. The market [or full [are tickets (F) (35 points) a) Calculate the inverse demand, write the prot maximizing condition, compute the prot maximizing price 19,?\" and the number of tickets Qfl'" that the AFL will choose to sell at ill fare, as well as its prot n21. (5 points) b) Use a diagram to illustrate the marginal revenue MR, the producer surplus PSF that the AFL enjoys, the consumer surplus of the full fare paying customers CSF, and the deadweight loss DWLF in this market. Then, compute CSF and DWLF. (6 points) c) Tax per unit (TU): The government decides to tax the AFL at $2 per ticket sold. Find the new optimal price P, and quantity 0%, that the AFL chooses and compute its prot 71%. Compute the government's tax revenue TRTU. (9 points) (:1) Lump sum tax (LS): Instead of a tax per unit, the government imposes a lump tax of $75 on the AFL. Find the new Optimal price PK. and quantity 0% that the AFL chooses and compute its prot Ir in this case. (9 points) 6) Suppose that the government is looking to tax the AFL to raise revenue for building new sport facilities for kids and hires you to advise which one of the taxes above a tax per unit or a lump sum ~ to implement. Which one of the two taxes would you recommend? Justify and explain why. (6 points)