Qin a particular monopoly the demand equation is given by

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Q. In a particular monopoly, the demand equation is given by: y(p) =5/P

1. What is the price elasticity of demand?

2. What is the total revenue of the monopolist at p = 1 and at p = 30?

3. If cost of production is $1/unit, write down the profit maximization problem for the rm.

4. Suppose by law, the rm must produce at least 1 unit. What is the optimal production of the monopolist?

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