A simple monopolist with demand curve given by: D = 120 2 p (or inverse demand curve p = 60 0.5 q) and marginal costis constant and equal to MC = 40 = ATC (average total cost).

a) Whats the profit-maximising level ofoutput and the price charged.

b) Calculate the producer surplurs, deadweight loss and consumer surplus.

c) What is the company's profit in equilibruim profit