Solo Creations holds a monopoly position in the production and sale of mano-nanometers. The Total Cost and Marginal Cost functions facing Solo are estimated to be
TC = 200,000 - 30 Q
MC = 30
a) If the price elasticity of demand, ED, is currently -3.0, what price should Solo charge?
b) What is the marginal revenue (MR) at the price computed in part a?
c) If a competitor develops a substitute for the mano-nanometer and the price elasticity increases (in absolute value) to -4.0, what price should Solo charge?