Discussion:
The is this, given that the demand function of a monopolist is Q=1/5(55-P),
a. derive the monopolist's demand and marginal revenue schedules from P=$55 to P=$20 at $5 intervals using Excel.
b. Calculate the ranges over which D is elastic and inelastic, and the point where D is unitary elastic.
c. Using the formula realting marginal revenue, price, and elasticity, calculate the price elasticity of demand at P=$40.