Suppose a monopolist faces a market inverse demand p = 10-Q, and its marginal cost

is constant at 4. Assume its fixed cost at zero.

a) Draw on the same graph the monopolist's demand, MR, and MC curves/lines.

b) Calculate the profit maximizing monopoly price, output, and profit.

c) Calculate the Lerner index at the monopoly price, as well as the price elasticity at

the monopoly output.