What is the price that the monopolist will charge

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Consider a monopoly where the market demand is given by P = 170-2.5Q. The monopoly is facing the following costs: MC = 20, and TC = 20Q + 1,250.

a) What is the marginal revenue of the monopolist? What is the condition for profit maximization in monopoly?

b) Find the quantity that maximizes the profits of the monopolist.

c) Given your answer in part (b), what is the price that the monopolist will charge?

d) What is the profit formula? Find the profit of the monopolist.

Reference no: EM13204248

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