1. Monopolist Gigantor Inc. faces inverse market demand P = 400 - 0.01Q. Assume that the firm's total cost curve is C = 800,000 + 10Q + 0.015Q². a. Find and graph the firm's profit-maximizing price and output P^M, Q^M.b. Calculate the Lerner Index at the price and output you found in part a. What does this number represent? What determines its size? c. Find the firm's ATC curve, add it to your graph, and illustrate the firm's profit. What is the per unit profit at the profit-maximizing price and output? What is the total profit? d. Explain in words why Gigantor does not produce more output, given that the ATC is so far below the price at Q^M? Suppose the government levies an 8% tax on profits. Does this tax alter the monopoly's price-output choice? Explain why or why not.