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Monopoly Equilibrium. Paradox Dental, Ltd., enjoys a local monopoly in the provision of oral examination services, in Tuskegee, Alabama, Total and marginal revenue relation for the standard procedure are:TR = $250Q-$0.001 QsquaredMR =? Note: Marginal cost for the process is stable at $150 per unit. Fix cost are zero.
a. As a monopoly, calculate Paradox Dental's output, price, and profits at the profit maximizing activity level.
b. As a monopoly, calculate Paradox Dental's output, price, and profits at the revenue maximizing activity level.
c. What price and profit levels would prevail based on the assumption that a new entry into the local market results in competitive market pricing?
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