Suppose that market demand for sugar is given by P = 10, 000 30Q, where Q is number of pounds of sugar. Suppose the marginal cost of producing sugar is equal to $0.05 per pound.

(a) What is the equilibrium price and quantity of sugar if price is set to equal marginal cost, as in the competitive outcome?

(b) What is the equilibrium price and quantity of sugar if the industry is monopolized?

(c) What is the deadweight (welfare) loss of monopoly?