Bunter was asked the following question: A Soma producing monopolist incurs a cost of C(q) =...

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Bunter was asked the following question: A Soma producing monopolist incurs a cost of C(q) = 49q-(9-1) for producing q units of Soma where q4. The demand for Soma as a function of the unit price p is given by D(p) = 20-p. What unit price should a regulator interested in maximizing total surplus (consumer surplus plus monopoly profit) set? His solution appears below. Total surplus is consumer surplus plus profits: 1 (g) + 11(q)=(20x)dx - [49-(9) Differentiating with respect to q and setting to zero yields (20-9)-(49-(9)=0 6-2911 6+2911 10 10 Obviously the quantity that will maximize total surplus must be non-negative so, the solution is 2911 10 Is Bunter's solution correct? If yes, is his justification complete? If not, what is the correct solution and what are all the mistakes Bunter has made? Bunter was asked the following question: A Soma producing monopolist incurs a cost of C(q) = 49q-(9-1) for producing q units of Soma where q4. The demand for Soma as a function of the unit price p is given by D(p) = 20-p. What unit price should a regulator interested in maximizing total surplus (consumer surplus plus monopoly profit) set? His solution appears below. Total surplus is consumer surplus plus profits: 1 (g) + 11(q)=(20x)dx - [49-(9) Differentiating with respect to q and setting to zero yields (20-9)-(49-(9)=0 6-2911 6+2911 10 10 Obviously the quantity that will maximize total surplus must be non-negative so, the solution is 2911 10 Is Bunter's solution correct? If yes, is his justification complete? If not, what is the correct solution and what are all the mistakes Bunter has made?