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A monopolist has the following cost function C(q) = 2000 + 40q. The demand for its...

A monopolist has the following cost function C(q) = 2000 + 40q. The demand for its product is given by: q = 100 ? p/2.

(a) Find the optimal quantity, price, and profit.

(b) Find the elasticity of demand at the monopoly quantity and the Lerner index.

(c) Find the dead-weight loss due to the monopoly.

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