A monopoly firm faces the following demand curve: P = 130 – 0.02Q, where Q is weekly production and P is price. The firm

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A monopoly firm faces the following demand curve: P = 130 –
0.02Q, where Q is weekly production and P is price. The firm’s
marginal revenue equation is given by: MR = 130 – 0.04Q. The firm’s
total cost function is given by: TC = 45Q + 22,000. Marginal cost
is MC = 45. You can assume that the firm maximizes profits. Show
all work in answering the following questions.
a. Calculate this firm’s optimal (profit-maximizing) quantity
and price. Show all work.
b. Calculate this firm’s profit. Show all work
c. If the firm acted as a perfect competitor, how much would it
produce, and at what price?
d. What is the deadweight loss from monopoly power in part
(a)?