Please assist with the given problem. Provide step by step computations for each.
The following information about a monopoly is given:
Demand: Q = 40-2P(Q) Average cost: AC(Q) = Q
Marginal Cost: MC(Q) = 2(Q)
(1) Derive the marginal revenue equation
(2) Find the quantity at which profits are maximal. given that quantity, find the price charged and the monopolist's profits. (solve for answers using the equations)
(3) What is the efficient output?
For a monopolistic producer facing two markets, given the price and output in one of two markets, how would you determine the profit-maximizing output and price in the other market under price discrimination?