1. Hanya Corp. has a patent for a new promising age-defying moisturizer cream. The annual demand, marginal revenue, and marginal cost functions for this cream is estimated as:

P = 150,000 - 250(Q)

MR = 150,000 - 500(Q)

MC = 100

A) If Hanya Corp. behaves as a profit maximizing monopoly, determine the price and quantity that prevails in this market.

B) Determine the socially efficient price and quantity in this market.