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4) Consider a profit maximizing monopoly. The demand for the monopoly's product is given by Q - In(a - bP) and its cost function is

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4) Consider a profit maximizing monopoly. The demand for the monopoly's product is given by Q - In(a - bP) and its cost function is C(Q) = ce, where the parameters a, b, and c are all positive. Let @* be the monopoly's optimal (profit-maximizing ) output. Which of the following gives aQ* /da? da a-bP aQ* H = da a-bP-ce aQ" = da e@ (2-Q-bc) = 1+Q-bc = e-Q a - bp - cel = a - bp + cel da a - bp - e-Q da

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