Question: Suppose a monopolist's total cost function is = () and faces a market demand () where is the output of the monopolist. (a) Derive the

Suppose a monopolist's total cost function is = () and faces a market demand () where is the output of the monopolist. (a) Derive the profit-maximization condition of a typical single-price monopolist. (b) Demonstrate how the result from part (a) can be re-arranged to relate the Lerner Index to the demand elasticity.

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