Monopoly (70 points) A monopolist has an inverse demand curve given by P = 24 Q and a cost curve given by c(Q) = C12: Notehere there is no fixed cost, only variable cost. For each of the questions below, you can just state your final numerical answer uniess otherwise indicated. A. (8 points) Derive expressions for the AR, MR, AC, and MC curves of the monopolist (these should all be functions of the output level (1). (4 points) Sketch in the graph below the AR, MR, AC, and MC curves (6 points) What will be its profit maximizing level of output? Provide some details for how you obtained this number. (12 points) What is the dollar amount of total social surplus (T5) = consumer surplus (CS) + producer surplus (PS) + government revenue (GR) in this monopoly scenario? (6 points) By contrast in a perfectly competitive industry, output would be set based on the criterion that P = MC. Suppose that the same MC curve above for the monopolist is also the MC curve for an alternative industry that consists of many competitive firms. What be the amount of Q supplied by the competitive industry? (10 points) What is the difference in the total social surplus TS of the monopoly scenario versus the perfectly competitive scenario? Provide some detaiis for how you obtained this number. What would you call or how would you interpret this dollar amount? (8 points) Suppose the government decides to put a tax on this monopolist so that for form of taxation and how much will the consumer pay for the good? Show some reasoning/anaiysis whereby you arrived at your answer. . (8 points) Suppose that instead of the policy in (h) above that the government puts a lump sum tax of $10 on the profits of the monopolist. What will be its output and what price would consumers pay for units of the monopolist's good? Show some reasoning/anaiysis whereby you arrived at your answer. 18 points) Which ofthe two regulatory schemes (h) or (i) would you favor, and why