The following table shows the demand for water and cost conditions for the New South Springdale Water Utility, a pure monopoly.
a. Complete the table.
b. What is true about the relationship between marginal revenue and marginal costs when profit is the greatest?
c. Suppose the government imposed a tax of $103 on the firm that the firm had to pay even if it went out of business. What would be the profit-maximizing level of output? What would happen to profits? Would the firm stay in business?