14.1 A monopolist can produce at constant average and marginal costs of AC = MC = 5. The firm faces a market demand curve given by Q = 53 P. a. Calculate the prot-maximizing pricequantity combi- nation for the monopolist. Also calculate the monopo- list's prots. b. What output level would be produced by this industry under perfect competition (where price = marginal cost)? c. Calculate the consumer surplus obtained by consum- ers in case (b). Show that this exceeds the sum of the monopolist's prots and the consumer surplus received in case (a). What is the value of the \"deadweight loss\" from monopolization? 14.2 A monopolist faces a market demand curve given by Q = 70 p. a. If the monopolist can produce at constant average and marginal costs of AC = MC = 6, what output level will the monopolist choose to maximize profits? What is the price at this output level? What are the monopolist's prots? . Assume instead that the monopolist has a cost structure where total costs are described by C(Q) = 0.25Q2 - 5Q + 300. With the monopoiist facing the same market demand and marginal revenue, what pricequantity combination will be chosen now to maximize profits? What will prof- its be? . Assume now that a third cost structure explains the monopolist's position, with total costs given by C(Q) = 0.013303 5Q + 250. Again, calculate the monopolist's pricequantity combi- nation that maximizes profits. What will prot be? Hint: Set MC = MR as usual and use the quadratic formula to solve the second-order equation for Q. d. Graph the market demand curve, the MR curve, and the three marginal cost curves from parts (a), (b), and (c). Notice that the monopolist's protmaking ability is con- strained by (1) the market demand curve (along with its associated MR curve) and (2) the cost structure underly ing production