Question: Image attached QUESTION 4 Consider a monopolist with a constant marginal cost, MClq} = 5, who faces the market demand function [3pr = 600 -

Image attached

QUESTION 4 Consider a monopolist with a constant marginal cost, MClq} = 5, who faces the market demand function [3pr = 600 - 25p l{a}! Use the markup formula to derive the profit-maximizing price for the monopolist. (b) Explain what the Lerner Index measures, then calculate it for the profit-maximizing monopolist. l(c) What is the amount of consumer surplus generated at the prot-maximizing price set by the monopolist

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