network of tubes to deliver beer on tap to every student living in one of the massive campus dormitories. The fixed costs of investment were $1000 but allow beer to be then be produced at constant marginal cost of $1 / beer (this is also variable cost). The beer supplier hopes to earn massive profits but some students have begun a campaign to regulate the price of beer because, as one student put it, "Beer is good...." (cont'd p 3) Assume demand is given by the relationship: P = 10 - .005Q. This means MR = 10 - .01Q calculate the deadweight loss