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Question 3. Profit Maximisation [20 Marks] A monopolist firm has a total cost function given by: TC = 160 + 2Q2 The demand is given by: P = 140 -5Q (a) What output and price should the monopolist firm set to maximise profit? [6 Marks] (b) How much profit does the firm generate based on the calculation in (a)? What consumer surplus would be generated? [6 Marks] (c) What would output be if the firm acted like a perfect competitor, what consumer surplus would then be generated? [5 Marks] (d) How are the demand curves of Perfectly and Imperfectly Competitive Firms.? Explain briefly and draw them. [3 Marks]