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Suppose a least powerful monopolistic firm faces a downward-sloping market demand curve. If the government imposes a per unit tax oft on the firm, then use a properly labeled graph to help you prove algebraically and explain intuitively how the shape of the marginal cost curve affects consumer tax burden and the percentage of tax pass-through. You must show step-by-step derivation and relate your explanation to every line, point, and change in each graph according to lecture discussion in order to earn marks. Suppose a monopolistic firm produces its product at constant marginal cost MC, and average cost AC at MC; = AC7 = 20. The market demand P = 100 - Q where P is price and Q is quantity. Calculate for the profit-maximizing output Q, and price P1, Lerner Index LE , and demand elasticity |E:(call this Case #1). If the government imposes a per unit tax t = 10 on the firm. Calculate for the profit-maximizing output , and price 1, Lerner Index LE , demand elasticity litl, consumer tax burden CTB,, tax pass-through, and tax revenue TR(call this Case #1t). Repeat Case #1 and Case #1t when demand changes to P = 180 - 2Q and compare the results. Answer this question according to tutorial discussion and show your step-by-step calculation with explanation in order to earn marks. Suppose a least powerful monopolistic firm faces a downward-sloping market demand curve. If the government imposes a per unit tax oft on the firm, then use a properly labeled graph to help you prove algebraically and explain intuitively how the shape of the marginal cost curve affects consumer tax burden and the percentage of tax pass-through. You must show step-by-step derivation and relate your explanation to every line, point, and change in each graph according to lecture discussion in order to earn marks. Suppose a monopolistic firm produces its product at constant marginal cost MC, and average cost AC at MC; = AC7 = 20. The market demand P = 100 - Q where P is price and Q is quantity. Calculate for the profit-maximizing output Q, and price P1, Lerner Index LE , and demand elasticity |E:(call this Case #1). If the government imposes a per unit tax t = 10 on the firm. Calculate for the profit-maximizing output , and price 1, Lerner Index LE , demand elasticity litl, consumer tax burden CTB,, tax pass-through, and tax revenue TR(call this Case #1t). Repeat Case #1 and Case #1t when demand changes to P = 180 - 2Q and compare the results. Answer this question according to tutorial discussion and show your step-by-step calculation with explanation in order to earn marks

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