2. THE PRICE OF POLITICAL PERSUASION: Uh, oh there has been a lot of news lately about the government using antitrust law to rein in you and your social media empire. Hoping for more favorable treatment and a more protable business environment, you invest in some lobbyists to represent your rm and communicate your perspectives to the nice lawmakers in Washington, DC. Your market researchers tell you that your monopoly faces a market demand curve of P[Q] = 200 Q and that your total costs are TC[Q] = 80Q. a. Assuming that you are a profit-maximizing monopolist, compute P*, Q*, PS, CS and DWL. Draw the graph! b. Suppose that if you hire Lobbyist A, trade barriers fall and your demand curve pivots out to P[Q] = 200 (1/2)Q. What is the new monopoly price, and how much would you be willing to pay for Lobbyist A? TIP: Don't include the cost of the lobbyist yet; instead, find the new prot first, find how much this lobbyist would add to your prot, and then think of subtracting the fixed cost of the lobbyist. Essentially, how much wd you pay for this rightward demand pivot