3. Consider an industry dominated by a single monopolist. The demand for the product is given by Qd = 120.2P. Costs per unit of output are constant, and the firm estimates these to be $35 per unit.

(a) What will be the profit-maximizing quantity of output pro- duced by the firm, and what price will the firm charge?

(b) What will be the total revenues, total costs, and total profit at the profit-maximizing level of output?

(c) Suppose that this industry was perfectly competitive instead of a monopoly, would the market price and level of output be any different from the above? If so, what would they be?

(d) Suppose the government decides to regulate this industry, and the price is set at $40 per unit. Will this change the firm's profit from the pure monopoly case? How will it affect the total of output produced by the industry?