A monopolist faces linear demandp = a - Bq and has cost C = cq + F, where all parameters are positive, a > c, and (a – c)? > 4BF. (a) Solve for the monopolist's output, price, and profits. (b)...

Extracted text: A monopolist faces linear demandp = a - Bq and has cost C = cq + F, where all parameters are positive, a > c, and (a – c)? > 4BF. (a) Solve for the monopolist's output, price, and profits. (b) Calculate the deadweight loss. Assume now the government requires this firm to set the price that maximizes the sum of consumer surplus and producer surplus, and to serve all buyers at that price. (c) What is the price the firm must charge? (d) Calculate the firm's profit (or loss) under this regulation. Is this form of regulation sustainable in the long run?