10 Based on market research, a film production company in Ectenia obtains the following information about the demand and production costs of its new 4K Blu-ray:

Demand: P = 1000 - 100 Total revenue: TR = 10000 - 1002 Marginal revenue: MR = 1000 - 200 Marginal cost: MC = 100 + 100 where O indicates the number of copies sold and Pis the price in Ectenian dollars.

a Find the price and quantity that maximise the company's profit.

b Find the price and quantity that would maximise social welfare.

c Calculate the deadweight loss from monopoly.

d Suppose, in addition to the costs above, the director of the film has to be paid. The company is considering four options:

a flat fee of 2000 Ectenian dollars.

ii 50 per cent of the profits.

iii 150 Ectenian dollars per unit sold.

iv 50 per cent of the revenue.

For each option, calculate the profit-maximising price and quantity. Which, if any, of these compensation schemes would alter the deadweight loss from monopoly? Explain.