A monopolist has a single customer with the demand curve P=20-Q. (This customer will buy different quantities at different prices.) Assume that the monopolist's MC (Marginal Cost) is zero and that FC (Fixed Cost) equals zero. Part A: The monopolist uses standard pricing (the monopolist sets a single price for all units that the customer buys). The graph below shows the Demand curve and Marginal Cost curve. Solve graphically for the Price and Quantity that will maximize profit for the monopolist. Shade the areas on the graph that represent CS (Consumer Surplus) and the monopolist's profit. 20 16 12 8 4 D Q 4 8 12 16 20 MC=0 Use the information below to help answer Part B and Part C: Assume that you are considering entering this market with the goal of tempting away the single customer. Assume the following: . You have FC=0 and MC=0 You and the monopolist produce identical products, so if you can attract away the single customer, then you will have the same demand curve as above, i.e., P=20-Q The monopolist has committed to the price from Part A, even if you enter. (Example: The monopolist has publicly posted their price from Part A and it can't be adjusted)Part B: One way for you to enter the market is to employ standard pricing. If you do that and want to tempt the customer to switch to you, then the prioe that will maximize your prot is 1 penny less that the monopolist's posted price from Part A. If you announce that price. how many un'rls will the customer buy from you and what will be your prot? Part C: Instead of using standard pricing, assume that you want to use a two-part tariff to lure the customer away from you. What is the twopart tariff that maximiza your prot? Also, remember that the customer can buy from the monopolist at the price in Part A. In order for the customer to buyfrom you, you must offer the customer a way to be better off buying from you than from the monopolist. This requirement must be factored into the twopart ta riff that maximiza your prots. Explain your answer and explain how it addresses this requirement. What is your prot with your answer? erlat is the consumer' 5 CS with your