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Problem: A monopolist has a demand function given by Q = 100 - P and a Total Cost function given by C(Q) = 16 + Q2. Notice how the demand function is identical to Question 5; however, the cost structure in Question 5 implies constant marginal cost, whereas the monopolist faces a fixed cost and increasing marginal cost in this question.
Required:
Question 1: Calculate the profit-maximizing quantity (Q*) for the monopolist.
Question 2: Calculate the profit-maximizing price (P*) if the firm sold the profit-maximizing quantity (Q*).
Question 3: Calculate the profits earned by the monopolist if it sells the profit-maximizing quantity (Q*) at the profit-maximizing price (P*).
One of the elements of monopolization is a. monopoly pricing b. having a monopoly
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