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A monopolist has demand function Q(P)-ap-ε (with lel > 1) and total cost function TC(Q)-cQ (a) Show that the demand elasticity is -e (b) Find the firms optimal price as a function of c and ε. (c) What happens to price as є ічі.e. є approaches 1 from the right side of the number line)? (d) What is the monopolys profit-maximizing output?

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