Please see the attached image(s)/screenshot(s) for the question and all its sub-questions that also need to be answered. All pertinent background information that was provided to me is also included in the attached. Moreover, the general topic being covered is "Monopoly" and how monopolists choose the output that maximizes profit.

Question 3 When changes in quantity are very small and we can use data on a rm's price and its price elasticity of demand to calculate the rm's marginal revenue. Specically, the following equation gives the relationship between the price, price elasticity of demand and marginal revenue: MR 2 P[1+ 1) 8 a. What does marginal revenue equal when price equals $20 and price elasticity of demand equals 2? If the rm's marginal cost of output is constant and equal to $10 per unit, is this rm maximizing its prot? If not, should the rm increase or decrease its output? Explain. b. What does marginal revenue equal when price equals to $50 and price elasticity of demand equals 2? If the rm's marginal cost of output is constant and equal to $27 per unit, is this rm maximizing its prot? If not, should the rm increase or decrease its output? Explain. c. What does marginal revenue equal when price equals $60 and price elasticity of demand equals 1? If the rm's marginal cost of output is constant and equal to $30 per unit, is this rm maximizing its prot? If not, should the rm increase or decrease its output? Explain. d. What does marginal revenue equal when price equals $60 and its price elasticity of demand equals - 0.2? If the firm's marginal cost of output is constant and equal to $30 per unit, is this firm maximizing its profit? If not, should the firm increase or decrease its output? Explain