Assume that a monopolist firm has the following demand, marginal revenue and cost equations:

(Demand) P = 500 - 4Q (Marginal Revenue) MR = 500 - 8Q (Average Cost) AC = 50 (Marginal Cost) MC = 50

a. Under the one price for every unit sold pricing strategy, the firm's greatest possible profit would be _____ b. Assume that this firm is considering the use of a two-part tariff. If the total profit from the two part tariff is greater than what occurs in part a, then the monopolist will switch pricing strategies. Assume that in implementing the two part tariff, the firm sets P = $50, and knows that they can collect all of what would be the maximum potential fixed fee revenue available at that price. Under the two part tariff, the firm's overall profit would be _____ (note: for 5a and 5b, record your answer in terms of dollars and cents, e.g. $100.00, not $100, or $100.40, not $100)