Consider a monopoly that produces a single good. The inverse demand for the good is p = A - bQ where Q is the monopoly’s output, p is the price, and A and b are positive constants. The cost of producing the good is C(Q) = Q^2 / 2. (a) Solve for the monopoly quantity. (b) Given your answer to part a, what is the monopoly profit and what is consumer surplus? (c) What happens to the monopoly price and profit when A increases? What is the intuition for the answer (hint: what happens to the elasticity of demand when A increases? What happens to the price and to the monopoly profit when the elasticity of demand changes?) (d) Compute the welfare loss due to monopoly pricing and examine how it varies with A and b. Can you provide an intuition for your result? (e) Given your answer to part a, what is the deadweight loss? (Hint: notice that the deadweight loss is the area between the demand function and marginal cost for all units from the monopoly output up to the quantity at which demand equals marginal cost). Please provide a detailed answer.