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Suppose the (inverse) demand function facing a firm is p(q)=10 – q, where p is the...

Suppose the (inverse) demand function facing a firm is p(q)=10 – q, where p is the price, q is quantity.

1. Draw the (inverse) demand function and marginal revenue. Show your detailed work such as slope, intercept.

2. Suppose the firm has a marginal cost MC=q, and it is the only firm in the market (that is, monopoly). Find the output level and price set by the firm based on your graph in (1). (You do not need to derive the specific number, but just show them by the graph)

3.Find out the revenue of the monopoly and shade it.

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