A monopoly drug producer holding a patent has demand P=420-0.02q and costs TC=195,000+60q+0.02q2

a. Calculate the profit-maximizing quantity, price, and profit for the drug producer.

b. Calculate the producer and consumer surplus, as well as the deadweight loss triangle. Using a graph, show the demand, MC, MR, and shade in the CS, PS, and DWL.

c. Suppose the patent runs out and generic firms enter, causing the industry to be perfectly competitive. What is the new price and quantity that exists? Calculate the new CS, PS, and DWL