A monopolist faces a demand curve given by

Q(P) = 50 - 1/2P and faces a total cost curve given by TC(Q) = 20 + 40Q. This cost curve

implies a constant marginal cost of MC = 40.

a) Find the inverse demand curve, or P(Q).

b) Find total revenue TR(Q) and write down the profit function(Q).

c) Find the marginal revenue curve MR(Q).

d) Find the prot-maximizing quantity Qm and price Pm for the monopolist.

e) What are the monopolist's prots? What is consumer surplus? (Hint: You may want

to draw a graph to determine CS.)