posted by Michelle on .
. Suppose the demand curve for a monopolist is QD =500 - P, and the marginal revenue function is MR =500 – 2Q. The monopolist has a constant marginal and average total cost of $50 per unit.
a. Find the monopolist’s profit – maximizing output and price.
b. Calculate the monopolist’s profit.
c. What is the Lerner Index for this industry?