Stalla has a monopoly in the ultra high speed computer market.Its pricing policy can be characterizedby a two part tariff scheme: users are levied an "access charge" plus an hourly rental rate. Stalla's marketing staff estimates the demand and marginal revenue for each potential user as:

P = 80 - 0.25Q,

where P = price per hour of computer time, and Q = the number of hours of computer time leased per month.The firm estimates that marginal cost is $40 per computer hour.

a. (3) Assuming that Stalla uses a two-part tariff, what "access charge" and hourlyuser feeshould the firm set? What are total profits?

b. (2) Is this pricing policy efficient, or does it create deadweight loss? Why or why not?