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Consider Amazon AWS as the only known company providing cloud computing service in the world. The demand for cloud computing service is given by P = 100 - Q, and the marginal revenue in this monopoly market is MR = 100 - 2Q. The marginal cost of providing this service is MC = 5Q. 1. (2pts) When total revenue is maximized, what is marginal revenue equal to? 2. (4pts) Suppose a monopolist has to purchase new equipment and his fixed costs increase. Explain what will happen to the monopolist's profit-maximizing output quantity and the monopolist's profits. 3. (6pts) Find the monopoly output and price set by Amazon AWS. 4. (8 pts)Draw the demand, MR and MC curves on the graph below. Show the deadweight loss due to Amazon's monopoly power on the graph, and calculate its value. 5. (5pts) If now Amazon decides to sell 1 more unit, what are the output and price effects? 6. (Bonus 5pts) Can you decide whether the demand curve within the output range mentioned above is price elastic or not? (Hint: think about the relationship between MR and price elasticity)