Assume that there is a monopoly company with two stages of production, and the inverse demand function in the market is pq=a-b(q) . The cost per unit in the first production stage is c1, with the output of q1. The cost per unit in the second stage is c2=c1-mq1 due to learning effect. Assume that a>c ,b>m ,and there is no time discount. (a): please solve the optimal output in both stages. (b): if a ‘good' government wants to control this company, what the company will do? What will happen if the government requires that the marginal cost should be equal to the price?