A monopolist faces linear demand p = a - bq and has cost C = cq + F, where all parameters are positive, a > c, and (a - c)* > 46F. (a) Solve for the monopolist's output, price, and profits. (b) Calculate the deadweight loss and show that it is positive.

To solve the problem, we will first derive the monopolists output, price, and profits in part (a), and then we will calculate the deadweight loss in part (b). (a) Monopolists Output, Price, and Profits 1. Demand Function: The demand function is given by p = a - bq. 2. Cost Function: The cost function is C = cq + F, where c is the marginal cost and F is the fixed cost. To find the monopolists output, we need to determine the marginal revenue (MR) and set it equal to marginal cost (MC). 3. Total Revenue (TR): TR = p q = (a - bq) q = aq - bq2. 4. Marginal Revenue (MR): To find MR, we t...