A monopoly faces a demand curve given by q(p) = p^(-e) . The firm has constant average and marginal cost c.
(a) How do you show that the elasticity of demand is always equal to e
(b) How do you find the profit maximizing price and quantity in terms of e (answer? p=(e/(1+e))c q=(ec/(1+e))^-e)
(c) How do you calculate the consumer and producer surplus