Suppose a monopolist is facing a demand curve, Q= 0.2(55-P).

QUESTION

Suppose a monopolist is facing a demand curve, Q= 0.2(55-P).a.Derive the monopolist’s demand and marginal revenue schedulesfor the values of P= $55 to P= $20 in $5 increments.b.One the same set of axes, plot the monopolist’s demand and marginal revenue curves. Indicate where theprice elasticity of demand is elastic, inelastic and unit elastic.c.Using the formula relating marginal revenue, price and price elasticity of demand, find theelasticity for P= $40and for P= $20

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