Question: Question 2 ) ( 6 points ) Consider the High West question from the notes. Recall the price of each bottle was p ( y

Question 2)(6 points) Consider the High West question from the notes. Recall the price of each bottle was p(y)=45 y/10000 and the cost of producing y bottles of whiskey is C(y)=2000+(y/100)2.
Now suppose that the government taxes High West at $4 per bottle of whiskey. Re-write High Wests profit function, tax(y), to account for the taxes they pay.
If the tax is accounted for as a cost, what is High Wests new marginal cost?
What is High Wests new profit maximizing quantity of whiskey? Is it higher or lower than the pre-tax
quantity, why might this be the case?

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