Problem: $27$ points:

$21.$ A music studio faces the following demand schedule when releasing the next Compact Disc by Bruno Mars. The studio must pay Mr$.$ Mars $\backslash (\backslash$$ $10\backslash )$ million to make the CD$,$ and the marginal cost of printing the $\backslash ($ C D $\backslash )$ is always $\backslash (\backslash$$ $3\backslash )$ per disc. P is price, in dollars; Q is quantity demanded, listed in millions of CDs$.$ Calculate total revenue, marginal revenue, fixed cost, marginal cost, variable cost, total cost, and profit for each quantity listed $($if a column is in millions, please label it accordingly$).$

What price and quantity would a profit$-$maximizing music studio choose? What profit will the studio make? price $\backslash (=8\backslash )$

Quantity $=6$ m

profit $\backslash (=20\backslash$mathrm$\{$~m$\}\backslash )$

Show this problem graphically by graphing the Demand curve, MR$,$ and MC$,$ labeling everything relevant, including the equilibrium price and quantity. Show Consumer and Producer Surplus. Extra credit $(1$ point each$)$: Also show the deadweight loss of monopoly $($hint: extend the linear demand curve down to the x $-$axis$).$ How much would the firm produce if it was owned by the government and trying to maximize economic efficiency $($make total surplus as big as possible$)?7$ m $?$

PART $2$

Finally, assume this demand curve is representative of demand for any Bruno Mars CD$.$ What is

the most money he could ask for in order to make his next CD that would still allow the firm to

produce the CD$?($Please answer the following hints: how do fixed costs affect the firm's

decisions on price and quantity? What is the minimum amount of economic profit a firm needs to

still make the product? Therefore, how much money could Bruno Mars make while still allowing

the studio to stay in business?$)$

I ONLY NEED HELP WITH PART $2$