4. COPYRIGHT PROTECTION. Because intellectual property amounts to a temporary monopoly, with all of its inefficiencies, an interesting policy question is how long this monopoly should last. In the US, patents are good for 20 years from the date of paperwork filing, while copyright protection lasts for much longer. The Copyright Act of 1976 set copyright terms at the life of the author plus 50 years, but in 1998, the Copyright Term Extension Act (sometimes called the Sonny Bono Act or the Mickey Mouse Protection Act) extended copyright terms to the life of the author plus 70 years. Suppose Taylor is about 30 and with life expectancy of 80, she expects to live for 50 more years. She writes a song today. Assume the song annually generates CS=100, PS=200, and DWL=100, and that the discount rate is 10%. a. Compute the extra value to Taylor of her copyright thanks to the new law. Using the annuity formula, find an exact answer in today's dollars. Hint: Use the difference between the pre-Act and post-cat annuities