(4 marks) Consider a monopoly firm which has:

TC = 6,000,000 + 2,000 Q MC = 2,000

AndDemand is P = 10,000 - Q so, MR = 10,000 - 2 Q

a) (1) Find the standard unregulated monopoly profit.

b) (1) Find the competitive profit (presumably by government order). c) (1) What is the deadweight loss of monopoly?

d) (1) Assume a regulator orders the monopoly to sell for a price of $2,850. Find the resulting profit.