A Monopoly There is one firm on the market which faces the inverse demand function p(r) = 120 -r, where r is the quantity demanded. The cost function is given by C(x) = 20.x. 1. Determine the profit maximizing output quantity and price. How do their values compare to the efficient solution? 2. Determine the welfare loss generated by the monopoly. 3. At what level should the government set a per-unit subsify to achieve the efficient solution