In Key West Florida, one of the hottest bars to be seen at is Captain Tony's Saloon (run by the infamous Captain Tony).

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In Key West Florida, one of the hottest bars to be seen at is
Captain Tony's Saloon (run by the infamous Captain Tony). Captain
Tony's total cost function for making and serving drinks on
any given night is: tc = $2Q, where Q is the number of drinks.
Note: this implies his marginal cost is constant and equal to $2.
Captain Tony has no fixed costs.
A slew of economists are in town living it up at a local resort
hotel. Suppose that a group of them, affectionately known as the
"Wild Bunch" and numbering 100, has persuaded Captain Tony to open
his saloon exclusively for them for this one night. He agrees.
Suppose that each member of the Wild Bunch has the same demand
function for drinks: Qi = 12 - 2P (where Qi is the quantity of
drinks person "i" demands and P is the price of a drink).
1. On a graph, illustrate the Wild Bunch's demand curve; Captain
Tony's marginal revenue curve; and Captain Tony's marginal cost
curve.
2. What is the profit maximizing number of drinks and price
charged per drink to these rowdy economists?
3. How much profit does Tony make?
4. Calculate consumers' and producer's surplus.
5. Is Captain Tony's profit maximizing position allocatively
efficient? Productively efficient?
6. Does Captain Tony's profit maximizing position create any
dead-weight-loss? If so how much?