1. Consider the graph below, which illustrates the demand for Fluff. Fluff can be produced at a constant marginal and average total cost of $4 per case. Price ($/case) $20 4 MC D 0 100 Quantity of Fluff (cases) a. Derive and draw in a carefully constructed marginal revenue curve. b. Determine the profit-maximizing level of output. What price must the monopolist charge to maximize profit? c. Calculate the profit earned by the monopolist. d. Show that this monopolist will not earn higher profits by selling one more or one less case of Fluff than the quantity you calculated in part b.3. The inverse demand for Harley Davidson motorcycles is given by P = 40,000-109, where P is the price in dollars and O measures the number of units sold each month. Harley Davidson is currently producing motorcycles at a constant marginal and average cost of $16,000. a. Solve for the profit-maximizing price and quantity of Harley Davidson motorcycles. b. Heavy tariffs on imported steel drive up Harley's marginal and average cost by $2,000. How do these tariffs affect Harley's profit-maximizing price and quantity? How will the tariffs affect Harley's profits? c. Does Harley Davidson pass on all of the higher costs due to the steel tariff to their customers? If not, how much?5. ij's Auto Detailing has locations in two distant neighborhoods. Uptown and Downtown. QW = 13001019, Uptown customers* demand is given by where Q is the number of cars detailed per month; Downtown customers' demand is QDT = 19600 _20P . The marginal and average cost of detailing a car is constant at $2. a. Determine the price that maximizes Kip's profit if he prices uniformlyr in both markets. How man},r customers will he serve at each location? What will his profits be? 13. Suppose Kip decides to charge different prices at each location. What price should he establish in each location? What will his prots be? c. How big are the gains to Kip*s differential pricing scheme