(1) A monopolist with cost function C(q) = (9 -8)3 + 1889 +512 sells in a market with demand q = 24 - p/50. Note that C(0) = 0, so the firm has no fixed costs. (a) What price p does the monopolist charge? What quantity q does he sell? (b) What output q* would maximize social surplus? What is the monopolistic outcome's deadweight loss? (c) The government decides to regulate the company and sets a price cap p. The govern- ment also offers the company a lump sum subsidy S if the the company stays and serves the market. What price cap p maximizes social surplus and what is the corresponding minimum subsidy S that the government can offer to ensure the company stays