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Problem 1: Assume that a monopolist sells a product with a total cost function TC = 400 + 0- . The market demand curve is

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Problem 1: Assume that a monopolist sells a product with a total cost function TC = 400 + 0- . The market demand curve is given by the equation P = 500 - Q. a. Find the profit-maximizing output and price for this monopolist. Is the monopolist profitable? b. Calculate the price elasticity of demand at the monopolist's profit-maximizing price. Also calculate the marginal cost at the monopolist's profit-maximizing output

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