Frontier Airlines has a monopoly on the route from Miami to Orlando. The demand curve for airline tickets is P = 900 0.005625Qd. The marginal cost curve for Frontier is MC = 100 + 0.004375Qs and the total cost curve is T C = 300 + 100Q + 0.0021875Q2

a) What is the profit maximizing price and quantity of tickets?

b) How much profit will the firm earn?

c) Graph the demand curve, marginal revenue curve, and marginal cost curve, and the show the profit maximizing quantity and price on your graph.

d) On the graph, shade producer surplus for the monopolist, consumer surplus under monopoly, and dead weight loss from the monopoly relative to perfect competition.