[Question 2 0 I 10 pts A monopolist faces a demand curve given by P = 40 Q where P is the price ofthe good and Q is the quantity demanded. The

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[Question 20 I 10 pts A monopolist faces a demand curve given byP = 40 — Qwhere P is the price ofthe good and Q is the quantity demanded. The marginal cost of production is constant and is equal to $2. There are no fixed costs ofproduction. Hint: To answer the following questions, it may be helpful to draw a graph! What quantity should the monopolist produce in order to maximize profit?| What price should the monopolist charge in order to maximize profit?| How much profit will the monopolist make? I What is the deadweight loss created by this monopoly? (Hint: compare the monopoly outcome withthe perfectly competitive outcome). Monopoly deadweight loss = I If the market were perfectly competitive, what quantity would be produced? I