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A monopolist produces trinkets at $2/unit. The demand for trinkets as a function of unit price p is: D(p) = 100-p.
1) At a unit price of $10, what will the demand be?
2) At a unit price of $10, what will total revenue be?
3) At a unit price of $10, what will the total cost of production be?
4) What is the monopolist's profit maximizing price?
5) Use the markup formula to determine the elasticity of demand at this price.
6) What is the monopolist's maximum profit?
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