Q1. (a) Suppose the marginal revenue (MR) function of a monopolist is 5000-0.25Q, what is the profit maximizing price and quantity?
(b) With the aid of illustrations, show or identify the demand, marginal revenue and total revenue curves.
(c) Using your illustrations, state the maximum amount of total revenue-in US dollars-that can be derived.
(d) Suppose the demand curve for a monopolist is 600 -P, and the marginal revenue function is MR = 600 -2Q. If the monopolist has a constant marginal and total per unit cost of $300: What is the profit of the firm (in US dollars)? Plot the average revenue, marginal revenue, and total revenue curves.