Suppose a bar in a remote mining town is the only bar within one hundred kilometres and so is a monopoly. The bar has a short run cost function () = 6 + 100 and the market demand for its drinks is = 400 40 where Q is the number of drinks and p is the price of a drink.

A). Find the bar's short run profit.

B). The bar comes up with an idea to have a cover charge of $A per person to enter the bar. There are twenty identical customers that make up the market demand = 400 40. Find the amount of the cover charge A per person and the price per drink p the bar should set to maximize profits. (4 marks)