Question: Now suppose the monopolist in Problem 2 has a total cost curve given by TC = 16 + 4Q2. The corresponding marginal cost curve is

Now suppose the monopolist in Problem 2 has a total cost curve given by TC = 16 + 4Q2. The corresponding marginal cost curve is now MC = 8Q and fixed costs are back to the original level. Find the monopolist’s profit- maximizing quantity and price. How much economic profit does the monopolist earn?

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