Under patent protection, a firm has a monopoly in its production. Market demand is estimated to be P = 200 - 0. The firm's economic costs are given...

1.     Under patent protection, a firm has a monopoly in its production. Market demand is estimated to be P = 200 - 0.7Q. The firm's economic costs are given by ATC = MC = $60 per unit.

a.                  Determine the firm's optimal output, price and economic profit.                                                             3 points

b.                 After the firm's patent expires, the marker starts operating under perfect competition. Assume that all of competing suppliers have the same combined economic costs as the original producer. What is the new market price, quantity, and total industry profit?                                                                                  2 points

Compute the resulting change in consumer surplus.