If a monopolist produces q units, she can charge 100 - 4q dollars per unit. The fixed cost of production is $50 and the variable cost is $2 per unit. a.  How can the monopolist maximize her profit?...

If a monopolist produces q units, she can charge 100 - 4q dollars per unit. The fixed cost of production is $50 and the variable cost is $2 per unit.


a.  How can the monopolist maximize her profit?


b.  If the monopolist must pay a sales tax of $2 per unit, will she increase or decrease production (relative to the situation with no sales tax)?


c.  Continuing part b, use SolverTable to see how a change in the sales tax affects the optimal solution.


d.  Again continuing part b, use SolverTable to see how simultaneous changes in the fixed and variable costs of production affect the optimal output level. (Use a two-way table.)