Question: 2. (20 points) Suppose the total cost function of a monopoly firm is: TC(9)= q - 61.25q? +1528.5q +2000 Suppose the revenue function for

2. (20 points) Suppose the total cost function of a monopoly firm is:TC(q)= q-61.25q2 +1528.52 +2000Suppose the revenue fun

2. (20 points) Suppose the total cost function of a monopoly firm is: TC(9)= q - 61.25q? +1528.5q +2000 Suppose the revenue function for the firm is: R(q)= 1200q-2q. With this information, answer the following questions: a. (5 points) Given the form of the revenue function, derive the inverse demand function for this monopolist. Also draw the graph for the demand function. b. (2 points) Form the firm's profit function for this monopolist. c. (10 points) Solve for the firm's profit maximizing output. For full credit it is absolutely necessary to show all the numerical work. d. (3 points) What is the profit at the profit maximizing output? 3. (15 points) Suppose the total cost function of a monopoly firm is: TC(q)= q - 61.25q +1528.5q +2000 a. (3 points) Derive the expression for the average variable cost (AVC) for this firm. b. (10 points) Solve for the firm's output where the AVC is minimum. For full credit it is absolutely necessary to show all the numerical work. c. (2 points) What is the AVC at this level of output?

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