Problem
1. Write an explanation of the monopoly pricing problem assuming the monopolist sets the price rather than chooses quantity. Why is the outcome the same either way?
2. Looking at the table in Question 3, if the interest rate increased to 15 percent, would the firm still have an incentive to innovate?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.