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A monopolist for a specialized product faces a market demand curve of P = 5000 4Q and MC = 20. (a) What is the profit-maximizing
A monopolist for a specialized product faces a market demand curve of P = 5000 4Q and MC = 20.
(a) What is the profit-maximizing price and quantity for the monopolist?
(b) What is the own-price elasticity at this price and quantity?
(c) Illustrate your answer from part (a) on a graph. Be sure to clearly label your axes, curves, and relevant points.
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