answers. Do not use this sheet as scrap paper, but use it to neatly present your work. Rona Barrett is starting her own subscription TV channel based on Hollywood gossip called The Daily Scoop. The demand for subscriptions depends on the monthly subscription price P and the number of hours of fresh gossip reported each month, G. The quantity of subscriptions will be Q = 3,888G1/2p-3 It costs $4 to produce an hour of fresh scandal for televising. In addition, it costs $2 per month to acquire a subscriber and maintain their account. The total cost of producing G hours of gossip and maintaining Q subscribers is 4G + 2Q. 1) What is the price elasticity of demand for The Daily Scoop? (2pts) 2) Recall that MR = P |1 + 2. Rona will pick the subscription price so that the marginal revenue of another subscriber equals the marginal cost. What will Rona set the subscription price at? (1pt) 3) At the profit-maximizing subscription price found in part 2), write an expression for the number of subscribers as a function of G, Q (G) = ? (1pt) 4) Assuming Rona charges the price found in part 2), write out an expression for profit as a function of Q and G. (1pt)5) Use the expression you found in part 3) to rewrite profit as a function of G alone. (1pt) 6) What is the profit maximizing amount of fresh gossip The Daily Scoop should produce each month? (2pts) 7) How many monthly subscribers will The Daily Scoop have? (1pt) 8) What profit will The Daily Scoop generate each month? (1pt)