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 a dead weight loss? Why or why not?