Given the demand function of a monopolist:
Q = 100 – P
and the cost function faces him/her:
C = 100 + 80 Q
a. Find out: equilibrium quantity (Q*), equilibrium price (P*), total revenue ©, average revenue (AR), marginal revenue (MR), total cost ©, average total cost (ATC), marginal cost (MC), total profit ( ), showing if there is a profit, break even, or loss faces this monopolistic firm.
b. Illustrate graphically the equilibrium of such a monopolistic firm.
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