B. Consider again the demand curve and MC curve as specified at the beginning of this exercise.

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B. Consider again the demand curve and MC curve as specified at the beginning of this exercise.

a. Derive the equation for the marginal revenue curve.

b. What is the profit-maximizing output level x M ? What is the profit-maximizing price p M

(assuming that the monopolist can only charge a single per-unit price to all consumers)?

c. In the absence of recurring fixed costs, what is the monopolist’s profit?

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