1 1 2) (12 pts.) A monopoly's production function is Q = K2L where K is capital and L is labor. The demand function is Q cost of capital r is $4. = 100 - p. The wage w is $1 per hour, and the rental e) Suppose the government imposes a specific tax of $2 per unit on the monopoly (the tax affects marginal cost curve), how does the monopoly change its profit maximizing quantity and price? f) Use a figure to show how the tax imposed in part (b) affects tax revenue, consumer surplus, producer surplus, welfare, and deadweight loss. What is the incidence of the tax on consumers?