1)Explain why the monopolist has no supply curve

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1)Explain why the monopolist has no supply curve.

2)Consider a natural monopolist (unregulated) that would like to produce where MR=MCMR=MC. It faces a downward - sloping demand curve of P=100−2QP=100−2Q and marginal revenue curve of 100−4Q100−4Q. Its marginal cost is $20 no matter how many units it makes, it is constant.

a. Solve for the profit-maximizing quantity for this natural monopolist by setting MR=MCMR=MC and solving for Q.

Q = _____

b. Suppose fixed costs are $100. What is the total cost for this monopolist?

TC = _____

c. What is the average total cost for the monopolist? What is the difference between this number and the price?

ATC = _____ Difference: _____

d. What are the monopolist's profits?

Profits = _____