The inverse demand for Fun Sun solar panel installations is given by P = 5000 - 10Q where P is the price in dollars and Q is the quantity of solar panel installations completed per month. Fun Sun completes solar panel installations with marginal cost of MC = 1,000 + 5Q.

A) Assuming Fun Sun has market power and prices their installations as if they are a monopolist, what price will they charge for installations and how many will they complete per month? (2marks)

B) Suppose instead that Fun Sun prices their solar panel installations as if the market is perfectly competitive. What is the equilibrium price and quantity? (3 marks)

C) Illustrate the situation in part (a) and (b) with a diagram. Calculate and illustrate the dead weight loss due to Fun Sun's market power.(3marks)

D) Suppose there is a global shortage in the solar panels that Fun Sun uses for its installations. This has increased Fun Sun's marginal cost by $2,000 to MC = 3000 + 5Q. Retaining the assumption of monopoly pricing, what price will they charge for solar panel installations and how many will they install per month? What does the new price tell us about Fun Sun's market power?(2 marks)