Question: Consider Amazon AWS as the only known company providing cloud computing service in the world. The demand for cloud computing service is given byP= 100Q,

Consider Amazon AWS as the only known company providing cloud computing service in the world. The demand for cloud computing service is given byP= 100Q, and the marginal revenue in this monopoly market isMR= 1002Q. The marginal cost of providing this service isMC= 5Q. There are no fixed costs and ATC=3Q. Show your work on all parts.

a. (4 points) Find the monopoly output and price set by Amazon AWS.

b. (4 points) Calculate Amazon's profits.

c. (7 points) Draw the demand, MR and MC curves on the graph. Show the deadweight loss due to Amazon's monopoly power on the graph, and calculate its value.

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