BlueSky Corporation, the sole provider of high-speed train services in the region, operates as a monopolist in the market and faces the market demand Q = (60 P)/4. The cost of Q service is given by C(Q) = 2 2 . Assume that BlueSky Corporation can only charge a uniform price to all buyers (no price discrimination). 1. (1 point) Find the marginal revenue and the marginal cost as a function of Q. Draw them along with the demand curve. 2. (1 point) Find the profit-maximizing price and quantity. What is the marginal cost at the profit-maximizing quantity? 3. (1 point) How much profit does the monopolist make? 4. (1 point) Calculate the producer surplus, consumer surplus and total surplus in the market. Illustrate them in a graph. 5. (1 point) What is the price elasticity of demand at the equilibrium point? What is the markup of the firm, defined by (P MC)/P (this is known as the Lerner index)