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Suppose a monopoly faces demand given by P = 24 - Q and has a cost function given by C = 10 + 4Q. (Revenue, R = PQ = (24 - OJQ. ) The monopoly maximizes profit by setting MR = MC. Which of the following statements is true.
a) At the monopoly solution P = 14 and MR = 4.
b) At the monopoly solution consumer surplus is 50.
c) At the monopoly solution profits equal 90.
d) All of the above.
e) None of the above.
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