Question 1: Monopoly and Price Caps A monopoly faces an inverse demand curve given by P = 240 2Q, and has total costs given by TC = Q* + 2400. (a) What is the profit maximizing quantity and price for the monopoly? (b) What are the monopolist's profits? () Draw the diagram clearly labeling the inverse demand, marginal cost and marginal revenue curves, and shading the appropriate regions corresponding to deadweight loss, consumer and producer surplus. (d) Calculate the deadweight loss, consumer and producer surplus. (e) What is the price cap / price ceiling the government would set that would maximize welfare? (f) Suppose that the government regulates the monopoly under the price cap / price ceiling in the previous part. What is the monopolist's profits under the price cap