1) A Monopolist producer of diamonds faces a demand curve for their product given by P = 150 - Q After accounting for all the costs of production, their total cost function is TC = 1,000 + 2 Q which reveals a marginal cost function of MC=Q.d) What is the socially optimal level of output? What is the price at that point? e) What is the total revenue, total cost, and therefore profit at the socially optimal point? f) If the government chose to subsidy the monopolist to incentivize them to produce at the socially optimal amount, how much would the subsidy need to be? g) What is one other strategy we talked about in class to incentivize the monopolist to produce at the socially optimal level and how does it differ from a subsidy? N Q Search