An industry produces its product, Scruffs, at a constant marginal cost of $50. The market demand for Scruffs is equal to
Q=75,000-600P
A) What is the value to a monopolist who is able to develop a patented process for producing Scruffs at a cost of only $45?
B) If the industry producing Scruffs is purely competitive, what is the maximum benefit that an inventor of a process will reduce the cost of producing Scruffs by $5 per unit can expect to receive by licensing her intervention to the forms in the industry?