Consider a monopolist with a cost function of () = + q. Suppose the market demand function is = 110 − 2p. a) Under uniform pricing (i.e. the basic monopoly problem), find the monopolist’s optimal price and quantity. b) Calculate the monopolist’s profits. Draw a diagram of the standard monopolist’s problem, identifying their profit maximizing price and quantity and a graphical illustration of their profits. The diagram does not have to depict the exact equations I have given, just use generic curves.
