(Answered) 1 the monopolists faces a demand curve given by dp 100 -

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1. The monopolists faces a demand curve given by D(p) = 100 - 2p. Its cost function is c(y) = 2y. What is its optimal level of output and price?

2. If the demand curve facing the monopolist has a constant elasticity of 2, then what will be the monopolist's markup on marginal cost?

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