Problem 1: Monopoly Equilibrium Suppose a firm operates as a monopoly in an unregulated market. The firm's total cost function for producing quantity, Q is given by the equation: TC = 2000 + 2000 + Q" The market demand curve is given by the equation: Q = 220 - 0.5P. What is the firm's marginal cost curve? Show graphically. What is the firm's marginal revenue curve? Show graphically. Calculate the monopoly's profit maximizing price and quantity. Show graphically. What is the socially efficient price and quantity? Show graphically. When moving from the socially efficient price and quantity to the monopoly solution: a. How does consumer surplus change? b. How does producer surplus change? c. What is the social cost of the monopoly solution? f. Calculate the monopoly rents. e oR