Suppose a firm has acquired a monopoly on water distribution in a certain county in Florida. The following table represents the demand and costs this monopolist faces.

1. The goal of the monopolist is to maximize its profit. What price per gallon of water should it charge and how many gallons per month should it sell? How much profit does it make?
2. Suppose that the government imposes a tax of $1 million per month on water production. What price should this water distributor charge? How many gallons per month should it sell? How much profit would it make?