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The marginal cost of a monopolist is given by MC (q ) = 2 + 2q while market demand is
q = 10 - p .
(a) Find the rm's marginal revenue.
(b) What is the prot-maximizing level of output and price?
(c) If TC = 2 + 2q + q2 , does the monopolist make any profit?
(d) What is the competitive market equilibrium? Find social cost of monopoly.
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