A monopolist has a cost function of c(y) = y so that its marginal costs are constant at $1 per unit. It faces the following demand curve: p> 20 100/р, р< 20 D(p) = (1) 1. What is the profit-maximizing choice of output? 2. If the government could set a price ceiling on this monopolist in order to force it to act as a competitor, what price should they set? 3. What output would the monopolist produce if forced to behave as a competitor?

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