Assume that a firm operates in an industry where it has all the market power and it faces a constant marginal cost of 50. The firm's market demand is Q = 300 3P.

(a) Are consumers harmed by the presence of market power? Explain using the example of this problem.

(b) Now assume that you are the policymaker and you want to "fix" this market. What kinds of policies can be used to increase competition?

(c) Using your answer to part (b), what would be the best possible outcome of this policy on the economy?

(d) Using your answer part (c), what would happen to the deadweight loss, producer surplus, and consumer surplus? Why?