Question: Consider ano differentiatedproduct market with inverse demand function P = 62 - 2 Q .Assume that all firms facethe total cost function C=2qi , where

Consider ano differentiatedproduct market with inverse demand functionP= 62 - 2Q.Assume that all firms facethe total cost function C=2qi, whereqdenotes the firm's production.Answer the following questions.

a)Suppose that the market is served by a monopolist who can only charge uniform liner prices according to the standard monopoly model. Find the monopoly equilibrium (price, quantity, profit& Lerner Index).N.B.a monopolist may maximise profit at price higher than marginal cost.

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