A monopoly faces the following demand and production costs: Demand: P = 10 - Q Marginal Revenue: MR = 10 - 2Q Marginal Cost: MC = 1 + Q

a. Find the price and quantity that maximizes the firm's profit. b. Calculate the consumer surplus, producer surplus, total surplus, and deadweight loss from monopoly. c. Suppose that the monopoly can perfectly price discriminate, find the quantity that maximizes the firm's profit and the total surplus to society. d. Does price discrimination increase or decrease social welfare? Explain your answer using the concepts learnt in this unit