Y6

2. In the future, in year 2074, dinner can be delivered using a transporter, where dinner at the restaurant is converted into an energy pattern, called dematerialization, and then sent to the target, your house, where it is reconverted to matter, so you can eat it. As you can imagine, for cost reasons, it's best that only one company does this per city, so monopoly is the only option. Demand is Q = 16-0.5P, where P is price and Q is quantity. The monopolist, a publicly traded firm called Scotty Inc., for obvious reasons, has a total cost of TC = 24 + 4Q. a. What is the profit maximizing choice for Q* and P* the monopolist? b. What is the dead weight loss? c. If this firm, Scotty Inc, could perfectly price discriminate, what output choice Q* would they pick and what would the resulting dead weight loss and producer surplus be? d. Say the council of elders decides that the DWL is tiresome. What price cap should the elders require Scotty Inc to obey, in order to minimize the dead weight loss, but allow the firm to break even