Explain the profit – maximizing output and price

Reference no: EM13197553

Suppose the demand curve for a monopolist is QD =500 - P, and the marginal revenue function is MR =500 – 2Q. The monopolist has a constant marginal and average total cost of $50 per unit.

a. Find the monopolist’s profit – maximizing output and price.
b. Calculate the monopolist’s profit.
c. What is the Lerner Index for this industry?

Reference no: EM13197553

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