1. "Food From Above (FFA)" has a monopoly in the production of guano burgers. FFA has the following demand, marginal revenue, and marginal cost functions:

Demand: P = 80 - Qd

Marginal revenue: MR = 80 - Q

Marginal cost = .5Q

In this problem, you will calculate the effect of a monopoly on this market. Show each answer graphically as well as numerically.

1. Find the level of output and the price that would exist if this market met the competitive result P = MC, or Demand = Supply. Find the consumer and producer surplus, and the total gains from trade (CS + PS), for this result. Draw a graph first, and then find the numerical values.
2. Now assume that "Food From Above" is a profit-maximizing single-price monopolist. What are its P and Q now? Find any consumer surplus, producer surplus, and deadweight loss graphically, then numerically.