Consider local shipping company that faces an inverse demand function for monthly supply consumption of Qd = 100 - P and has a marginal and average cost of $5. Calculate producer surplus, consumer surplus, total surplus, economic profit, and deadweight loss in the following scenarios.

Suppose that the company is regulated and required to provide minimum supplies at marginal cost. If it helps, think of the demand curve as representing one consumer. The customer is charged marginal cost for the first 20 units used; the next 40 units at a price of $25; and the fee for any supplies above 60 is $65. What does the profitability tell you in this example?