Economics
posted by Julie .
got this from my teacher,
A monopolist faces a demand curve given by the following equation: P = $500 − 10Q, where Q equals quantity sold per day. Its marginal cost curve is MC = $100 per day. Assume that the firm faces no fixed cost.
and have the answers for most, but can someone give me a bump in the right direction for the follow up 
Now suppose a tax of $100 per unit is imposed. How will this affect the firm’s price?

Government adds taxes; prices go up.

sorry, i understood that, but as the prices go up the output goes down.
but how can you recalculate the price. output drops to 15 in an earlier question, but i cant get my head around working out the price 
I don't know how you can predict or calculate such a thing. Some manufacturers will pass along most/all of the tax, while others will try to absorb as much as possible; still others may decide to shift their focus to other manufacturing areas; and some may decide to reduce their workforce.
Example: the new tax on manufacture of medical devices. 
ah ok, i see your point.
i had worked out that P = $500  2xQ(10x20) as MC = MR (100=100), so price was 300 and output 20.
the tax would mean a reduction in output to 15 units, by my calcs but how can i work out the corresponding price.
Respond to this Question
Similar Questions

Economics/Math
The demand curve for a monopolist is Qd = 500  P and the marginal revenue function is MR = 500  2P. The monoploist has a constant marginal and average total cost of $50 per unit. a. Find the monopolist's profit maximizing output … 
Economics/Algebra
A monopolist has a constant marginal and average cost of $10 and faces a demand curve of QD = 100  10P. Marginal revenue is given by MR=100.20P. a. Calculate the monopolist's profit maximizing quantity, price, and profit. b. Now … 
Economics/Algebra
The demand curve for a monopolist is Qd = 500  P and the marginal revenue function is MR = 500  2P. The monopoloist has a constant marginal and average total cost of $50 per unit. a. Find the monopolist's profit maximizing output … 
economics
A monopolist faces an upwardsloping marginal cost curve. Its profitmaximizing quantity will be a. at the minimum point of the marginal cost curve b. less than the (total) revenuemaximizing quantity c. equal to the (total) revenuemaximizing … 
Economics
Suppose the demand curve for a monopolist is Qd = 500 – P, and the marginal revenue function is MR = 500 2Q. The monopolist has a constant marginal and average total cost of $50 per unit. 
microeconomic
Consider a monopolist facing a demand curve given by P = 20 – q, where P is the market price and q is the quantity sold. The monopolist's marginal costs are MC = 2 per unit and a fixed cost of $20. What is the monopolist's profit … 
Economics
. Suppose the demand curve for a monopolist is QD =500  P, and the marginal revenue function is MR =500 – 2Q. The monopolist has a constant marginal and average total cost of $50 per unit. a. Find the monopolist’s profit – maximizing … 
economics
Suppose the demand curve for a monopolist is QD = 500 − P, and the marginal revenue function is MR = 500 − 2Q. The monopolist has a constant marginal and average total cost of $50 per unit. a.Find the monopolist’s profitmaximizing … 
Economics
A monopoly firm faces a demand curve given by the following equation: P = $500 − 10Q, where Q equals quantity sold per day. Its marginal cost curve is MC = $100 per day. Assume that the firm faces no fixed cost. You may wish … 
monoplistic competition
Suppose that a typical firm in a monopolistically competitive industry faces a demand curve given by: q = 60 − (1/2)p, where q is quantity sold per week. The firm’s marginal cost curve is given by: MC = 60. How much will the …