Question: I. Consider the graph below, which illustrates the demand for Fluff. Fluff can be produced at a constant marginal and average total cost of $4

I. Consider the graph below, which illustrates the demand for Fluff. Fluff can be produced at a constant marginal and average total cost of $4 per case. Price {Mm} 320 4 MC D U 100 Quantity of Fluff (cases) a. From the demand curve, derive inverse demand lnction. Also, nd marginal revenue of this producer and draw the MR curve with vertical intercept and slope. b. Apply the M R = M C rule to determine the prot-maximizing level of output; What price must the monopolist charge to maximize prot? c. Calculate the prot earned by the monopolist

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