In a city, electricity is produced by one firm. This firm is given the sole right to produce the city's electricity because it can produce the electricity needed more efficiently than could any other firm or firms. The firm is thus a natural monopoly. The demand for electricity is given by P(Q) = -5. Q+149 The monopolist has a cost of production given by C(Q) = Q2+158 One of the problems that the city faces is that since the firm is a natural monopoly, and since electricity has a very inelastic demand, the firm can make large profits. To control these large profits, the city is considering a revenue tax at a rate of 0.1 as a means of regulating the firm. Assuming that the firm is a profit maximizer. What Price would the firm set for electricity before the tax was instituted V X What is the quantity demanded at that price V X what is the monopolist's profits before the tax instituted V X What Price would the firm set for electricity after the tax was instituted V X What is the quantity demanded at that price VX What is the monopolist's profits after the tax was instituted V X What is the tax revenue for the city V X Suppose the city is contemplating a small increase in the tax rate above the 0.1 rate, what is the impact of this tax increase on the monopolist's profits V X