A monopolist has a constant marginal and average cost of $10 and faces a demand curve of Q(D) = 1000 – 10P. Marginal revenue is given by MR = 100 -…

A monopolist has a constant marginal and average cost of $10 and faces a demand curve of Q(D) = 1000 – 10P. Marginal revenue is given by MR = 100 – 1/5Q.

Should the monopolist try to deter entry by selecting a price limit?