Please answer all parts of the following question:

QUESTION 1 Monopoly Consider the following market with a single firm. Demand: P=260-2Q Total Cost: TC = 120 + 62 Q +.5 Q2 PART A. If the firm is a single price monopolist, it will produce a quantity Qpg = . The equilibrium price will be Py = :}. The firm earns dollars in profit. PART B. If this firm were a price taker and P = MC, it would produce a quantity Q = 66 and price P = 128. Given this, the monopoly deadweight loss (the money left on the table) is E dollars. PART C. Now suppose the firm is a two-price monopolist, separating its customers along the lines of their reservation prices, with a high price retail market and a lower discount price market. The price and quantity in the retail market is the same as what you found in Part A. All remaining customers are potential buyers in the discount market. The quantity that maximizes the monopolist's profits in the discount market is Qp = and the equilibrium price in the discount market is Pp = :} The firm earns dollars in profit (in total). PART D. As a result of the monopolist offering a discount price, the monopoly deadweight loss is reduced to :} REMARK: Answer these questions in the same manner as we covered in class the last two weeks