Question 4. Suppose a monopolist has the cost function: (q)=q*+10q+10 The inverse demand function is given by: p(q)=70-2q a) What is the monopolist's profit maximizing quantity and price? (8 points) b) What are the monopolist's output and profits if the government regulates them and makes them set price equal to marginal cost? (Hint: If we set price equal to marginal cost, we are basically secing where the marginal cost crosses the demand curve, just like we would have done with perfect competition) (8 points) ) By how much is the societal deadweight loss (DWL) decreased due to the government intervention in part (b)? (Hint: calculate the area of the triangle that is gained back after price is set to equal MC. Drawing a graph will be helpful to see the DWL) (6 points)