Suppose a monopolist faces market demand (Dm) of P(q) = a - bq and whose cost is C(q) = cq where c is a positive constant.
a. What the marginal revenue of the monopolist?
b. What is the monopoly price?
c. What is the monopolist's output at the price found in part (b)?
d. What would be the market clearing price and quantity under perfect competition
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