1. The demand curve in the market for slowcooked Chicago ribs is Q = 1000 5P. This market is a monopoly (one firm).

a. Graph the demand curve

b. Fill in the Table

			Elasticity of Demand	Revenue to the firm
$1
$10
$100
$150

c. At which price does revenue increase the most by raising the price by one dollar? Demonstrate your answer numerically, and justify the reasoning.

d. Justify the bromide that a monopolist never prices on the inelastic part of demand. Provide the intuition. (Note: this one is not easy try to think it through.)

e. Assume that the firm has zero costs, so that maximizing profit is identical to maximizing revenue. Find the optimal production point the revenue maximizing level of output. Evaluate consumer surplus

f. Give the marginal revenue function. Find MR at the optimal production point.