Q1:A perfectly competitive firm has ATC=0+50 + q in euros, facing the market demand QD = 50 - P Find the level of output needed to maximize the firm's profits. The government imposes a per- unit tax of t euros. If the firm adds the tax to its costs and then continues to maximise profits, show that the price of the good/service increases by two-fifths of the tax, irrespective of the value of t.