A monopolist produces a product whose demand price and production costs vary with quality s and quantity Q according to P = s(1 - Q) C = s²Q a) Calculate the price and quality levels that a monopolist would choose, and the corresponding quantity sold. b) Derive the consumers' surplus for any combination {s, Q}. c) The social planner does care for both consumers and monopolist (consumers' plus producers' surplus). Find the optimum quantity and quality.
