A monopolist faces market demand given by P = 60 - Q. For this market, TC = 0.5 Q2.

a. What quantity of output will the monopolist produce in order to maximize profits? What price will the monopolist charge in order to maximize profits? Show the result graphically.

b. Calculate consumer surplus, producer surplus, and deadweight loss and show your answer graphically.

c. Calculate the profit maximizing output and price under the perfect competitive market and compare your answer to part a. What can you conclude?

d. Calculate the profit for the perfect competitive market and explain what you expect to see in the market?