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The following table shows the demand for a product produced by a monopolist, who has a constant marginal cost and an average total cost of

The following table shows the demand for a product produced by a monopolist, who has a constant marginal cost and an average total cost of $45 per unit.

Quantity (thousands of units)

Price (dollars per unit)

0

120

1

105

2

90

3

75

4

60

5

45

6

30

a. Calculate the total revenue and marginal revenue for level of quantity.

b. What are the profit-maximizing level of output and the price of the product?In no more three sentences, explain why.

c. Calculate the monopolist's profit.

d. Calculate the Lerner Index for this industry.

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