1. A monopolist's total costs are given by 607) = 20 + 10q + q2 and she faces the demand curve q = 200 2p. a. b. C. What output will the monopolist sell, and at what price? Calculate the monopolist's profits. What output level, if produced, would maximize social surplus? Calculate the deadweight loss due to this monopoly. At the output chosen by the monopolist i. What is the price elasticity of demand? ii. What is the marginal revenue? 2. Consider the First and Second degree price discrimination model discussed in class. In the case ofthe Second Degree Price Discrimination example, suppose: a. If the number of units in Option B is fixed at 12 and the number of units in Option A is 6, and if the fee for option A is set equal to WTPL (6), what should be the fee for Option B to maximize profits? If the number of units in Option B is fixed at 12, and the number of units in Option A is x, and if the fee for option A is set equal to WTPL(x), what should be the fee for option B that would ensure consumer H buys it? What is the profit-maximizing number of discrete units in the Option A package? Explain