Question

A monopoly faces the following inverse demand function: MV=49 - 0.28*Q The firm's total cost function...

A monopoly faces the following inverse demand function:
MV=49 - 0.28*Q
The firm's total cost function is TC(Q)=$18*Q.

Current long term interest rates are 0.12.





What is the maximum profit of the firm?





What is the price elasticity of demand (absolute value)?



What is the markup?
In decimal, not percent. e.g. if it's a 35% markup put in 0.35.





What is the maximum increase in value of the firm from being a monopolist if the firm was sold?

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