Question 1 (25 marks). Gamerix is a monopolist in the industry of video game consoles. Its market demand is given by P = 1, 000 5Q, where P and Q are, respectively, the market price and quantity of consoles. The total cost of producing Q units is given by the cost function C(Q) = 200Q. Gamerix practises simple monopoly pricing. (3) Find the Marginal Revenue function and the marginal cost function. Find the profit-maximising quantity. (5 marks) (b) Find the profitmaximising price for Gamerix. Calculate the profit and the consumer surplus. (5 marks) (c) Calculate the deadweight loss associated with the monopoly power of Gamerix. (5 marks) (d) A potential competitor, Game List, arrives in the country. Game List has total costs 0915(6)) = 400 - Q. What price can Gamerix charge in order to retain the market? What would be the profits of Gamerix in that scenario. Would your answers in this part (part (d)) be different if CGL(Q) = 700 - Q ? (5 marks) (e) Consider the scenario described in part (d) when CGL(Q) = 400 - Q. What are the effects on the consumer surplus and the deadweight loss of the arrival of this potential competitor? What can you conclude about the effect of potential competition on the total surplus generated by a market operated by a monopolist