A monopolist firm comes to you for your consulting services. After some research you find they face the following demand function:

Q = 2,000 - 4P

a) They currently are offering their product at $200. What is the own price elasticity of demand at this point? Is demand price elastic, inelastic, or unitary elastic?

b) What is the function of total revenue? (Hint: P = 500 - 0.25Q)

c) What is the marginal revenue?

d) At what quantity does the firm maximize revenue? What is revenue at this point?