Work & Restis an all inclusive hotel operating as a monopoly in a mid-sized community.The manager estimates that the hotel's total costs are described by the equation C = 0.1Q²+ 20Q + 5000, where Q is the number or persons serviced and P is the price paid per person.Although it is located in a mid-sized community, it is close to a major highway that runs along the east coast.Often times, travelers would use the services ofWork & Restas a stop in their commute between two major citys.As such, the market demand for its service is described by the equation P = 170 - 0.2Q.

1. Given the current market conditions,Work & Rest'sprofit-maximizing quantity isand the price charged per person is( 4 points)

Consider that after a series of reports from special interest groups, the local government decides to regulateWork & Restby using the optimal pricing policy.

2.Given the successful implementation of the government's policy, Work & Rest's profit-maximizing quantity is(2 points)

3.Given the successful implementation of the government's policy, what isWork & Rest'sprofit at its profit maximizing quantity?(4 points)I

4.If the policy remains in place, and there are no further external shocks to the market, is it likely thatWest & Restwill continue to operate and provide service?(In the space provided enterwillorwill not)

In the long run,West & Restcontinue to provide service in this mid-sized community. (2 points)