If the inverse demand function of a monopolist is p = 300 - 3Q, and its cost function is C = 10 + 10Q - 4Q²+ (2/3) Q³,

a. What is the marginal revenue function?

b. Draw the demand and marginal revenue curves.

c. Derive the profit function of the monopolist.

d. What is the profit maximizing output and price for the monopolist? Show all the work.

e. What is the maximum profit?

f. What is the competitive price and quantity of output?

g. Now a specific tax of $2 per unit of output is imposed on the firm. How will this change the profit function of the monopolist?

h. What is the profit maximizing output and price post tax?

i. What is the tax revenue generated by the government?

j. In a separate graph (do not reuse the one drawn for part b), draw the price - quantity combinations before and after the tax was imposed. In your graph include among other things the MC, AVC and ATC curves, pre and post taxes.