Suppose that a monopoly is represented by the following equations:

Market (inverse) demand curve:P = 112 - 4 Qd

Marginal cost curve:MC = 2Q + 4

Marginal revenue curve:MR = 112 - 8 Qd

a.Find the profit-maximizing price and level of output (the monopoly outcome)?

b.Draw a well-labeled diagram representing the monopoly market structure?

c.Explain why MR is more steeply sloped than the D curve?

d.Explain why MC=MR maximizes profit?

e. Use the demand curve equation to determine two price-quantity pairs and show that MR is more steeply sloped than the D curve?

f. Start with the demand curve and use calculus to derive the MR curve?