In a particular monopoly, the demand equation is given by:
y(p) =5/P
1. What is the price elasticity of demand?
2. What is the total revenue of the monopolist at p = 1 and at p = 30?
3. If cost of production is $1/unit, prepare down the prot maximization problem for the rm.
4. Suppose by law, the rm must produce at least 1 unit. What is the optimal production of the monopolist?