Question: 1. Suppose inverse demand is linear: P(Q) = A bQ. The constant average (and marginal cost) of production for all firms is c. (a) Derive

1. Suppose inverse demand is linear: P(Q) = A bQ. The constant average (and marginal cost) of production for all firms is c.

(a) Derive the elasticity of demand.

(b) Derive the monopoly price and quantity as a function of the parameters of the model.

(c) Derive the competitive price and quantity as a function of the parameters of the model.

please show all calculations for the elasticity I got

e = (bq-a)/(bq)

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