If the inverse demand curveLOADING... is pequals=120120minus−Q and the marginal cost is constant at $2020, how does charging the monopolyLOADING... a specific tax of tauτequals=$88 per unit affect the monopoly optimum and the welfare of consumers, the monopoly, and society (where society's welfare includes the tax revenue)? What is the incidence of the tax on consumers? As a result of the tax, the profit-maximizingLOADING... quantity ▼ decreases increases by nothing units and the profit-maximizing price ▼ increases decreases by $nothing. (Enter numeric responses using real numbers rounded to two decimal places.)

The treasurer for pittsburgh iron works wishes to use financial futures to hedge her interest rate exposure. she will sell five treasury futures contracts at $139,000 per contract. it is july and the contracts must be closed out in december of this year. long-term interest rates are currently 7.30 percent. if they increase to 9.50 percent, assume the value of the contracts will go down by 20 percent. also if interest rates do increase by 2.2 percent, assume the firm will have additional interest expense on its business loans and other commitments of $149,000. this expense, of course, will be separate from the futures contracts. a. what will be the profit or loss on the futures contract if interest rates increase to 9.50 percent by december when the contract is closed out