A monopoly operates with the marginal cost function MC = 20 + 4q and faces the demand function p = 400 − 8q If a per unit tax t is imposed on its output derive reduced form equations for the profit maximizing values of p and q in terms of the tax t and use them to predict the effect of a one unit increase in the tax on price and quantity. Assume that fixed costs are low enough to allow positive profits to be made.