economics help?

[hehe]

Consider the production of plastic bags, which cause pollution in direct proportion to the volume of production. The demand for bags is given by Q = 2600-40P where Q is measured in millions of bags and P is measured in cents.

1. Assume that plastic bags are produced by a moopolist at a cost of $.15 a bag, that is TC = 15 *Q Derive the equations for price, marginal cost, average cost, and marginal revenue. What is the monopolist's profit maximizing level of output, the associated price, and its profits?

2. The government now imposes a pollution tax equivalent to 5 cents a bag, that is TC = 20 *Q. What happens to output, prices and profits if the monopolist simply raises the price by 5 cents? Can he do better by charging a different price? If so, what is that price, the associated quantity, and the new level of profits?