Demand is given by Q(P) = 601/3P and the marginal cost of production is constant atMC= 60 per unit.There are no fixed costs to production.

1.First, assume the market is perfectly competitive.

a)Find P(Q), the inverse demand curve.

b)Find the market price P^c and the market quantityQ^c.

c)What is producer surplus?What is consumer surplus?What is total surplus?

2.Now, assume there is a single monopoly producer.

a)Find (Q), the monopoly profits as a function of Q.

b)Calculate (Q), the derivative of the profit function.

c)Find MR(Q), the marginal revenue curve.

d)Find the market price P^m and the market quantity Q^m.

e)What is producer surplus?What is consumer surplus?What is total surplus?