Question: ( a ) The monopolist faces a demand curve given by D ( p ) = 1 0 0 p . Its cost function is

(a) The monopolist faces a demand curve given by D(p)=100 p. Its cost function is c(y)=2y. What is its optimal level of output and price?
(b) A firm has a supply function given by S(p)=2p. Its fixed costs are 50. If the price changes from 10 to 20, what is the change in its profits?
(c) If average variable costs exceed the market price, what level of output should the firm produce? What if there are no fixed costs?
(d) If D(p)=100/p and c(y)= y^2, what is the optimal level of output of the monopolist?

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