Consider the automobile monopolist Toyota. Demand for Toyota cars is p(Q) = 1,000-2Q and the company's marginal cost is $200 per unit. (a) (8) In the absence of competition, how much output would Toyota produce? What would be the market price? How high is consumer surplus? How high are profits? How large is social surplus? (b) (4) What is the elasticity of demand at the monopolist's chosen quantity? (c) (10) Now suppose the market is perfectly competitive (there are many firms called Toyota, each with a marginal cost of $200 per unit). How much output is produced in the entire market? What would be the market price? How high is consumer surplus? How high are profits? How large is social surplus? (d) (6) Now suppose that producing cars emits harmful pollution. Specifically, each car requires the emission of pollutants that cause $250 of harm at the margin to third parties in the neighborhood of the factory. Therefore, total third party costs are $250Q. With the presence of these additional costs, recalculate social surplus from parts a) and c)? Which market structure delivers higher social surplus in the presence of these external costs? (e) (8) For either perfect competition or monopoly (you get to pick), determine the size of the optimal tax that would be required to deliver an efficient (social surplus-maximizing) outcome.