thats the question

D 15 8 20 }} Quantitative Question: A monopoly sells a good in city A. Inverse demand is given by P = 60 - Q. Marginal cost is given by MC - 20. (a) (4 points) What are the profit-maximizing quantity and price? (b) (8 points) Suppose that city A can import the product from city B. In city B, the good is produced by a perfectly competitive industry with MC = 20. Transportation costs between city A and city B are $10 per unit. Explain how the monopolist's profit-maximizing price and quantity will change from that in part (a)? (c) (8 points) Suppose that the production of the good in city A also produces an externality where the marginal external costs are $5 per unit. Explain briefly whether the government would want to levy a tax on the good of $5 per unit. F -H