Suppose KERKA produces drip coffee makers, and is a price taker in the drip coffee makers market. The firm's total fixed cost of production is given by 100,000, whereas the total variable cost is given by TVC(q)=100q+(q2/10). The firm's marginal cost of production is given by MC(q)=100+(q/5). Assume that the firm can sell as many coffee makers as it wants at a price of 400.

a) What is the firm's optimal output level? b) Now assume the government imposes a per unit tax of 10 on this firm. What is the firm's new optimal output level? c) Now assume that instead of a per unit tax, the government imposes a lump sum tax equal to 290,000. What is the firm's new optimal output level? d) Assume that the government imposes an avoidable lump sum tax equal to 290,000. Note, avoidable tax means that the firm pays the tax only if it produces a positive amount of coffee makers. What is the firm's new optimal output level?