Your consulting firm was just granted an exclusivecontract f

Your consulting firm was just granted an exclusivecontract for your state. You now must decide your pricing policy, giventhe following relationships:P = $1400 – 0.0004QMR = $1400 – 0.0008QAVC = $1000where P is the price, Q the quantity, and AVC the average variable cost.The firm will encounter no fixed costs, andall revenue is after taxes. As your firm has been granted an exclusivecontract, your pricing and output decisions will be those of amonopolist.Tasks:Using the data above, calculate the output the firm will provide.Determine the price at this output level.Complete the Microsoft Excel Template given below using the data in the problem.Check whether your data is consistent with your calculations in question 1. Why or why not?Now assume that the statedecides to give as many contracts as it can for the same activity, soyour firm is now operating in a perfectly competitive market. How willyour price and output decisions change? Explain the differences and whythese changes happened. Attached is the excel template.