A monopolist faces the (inverse) demand for its product p=a-bQ. The monopolist has a marginal cost given by c and a fixed cost given by F.
a. Assume that F is sufficiently small such that the monopolist produces a strictly positive level of output. What is the profit-maximizing price and quantity?
b. Compute the maximum profit for monopolist.
c. For what values of F will the monopolist earn negative profit?