As the manager of a monopoly, you face potential government regulation. Your inverse demand is P = 40 2Q, and your costs are C(Q) = 8Q.

a. Determine the monopoly price and output.

Monopoly price: $ ( )

Monopoly output: ( ) units

b. Determine the socially efficient price and output.

Socially efficient price: $ ( )

Socially efficient output: ( ) units

c. What is the maximum amount your firm should be willing to spend on lobbying efforts to prevent the price from being regulated at the socially optimal level?

$ ( )