Suppose a monopolist faces a demand curve given by P=200-4Q. Additionally, she has marginal costs given by MC=100 and total costs given by TC=25+100Q.
a) calculate the formulas for the monopolists' FC, VC, ATC, AVC, and AFC.
b) calculate the profit - maximizing choice of output, price, and profits.
Also, how come, in a perfectly competitive market, the burden of a tax is shared in the short run? Also, why do consumers bear all of the burden of a tax in the long run?