A monopolist set price to p, and consumer quantity demanded to q(p). The monopolist does research to lower the cost of p

[answerhappygod]

A monopolist set price to p, and consumer quantity demanded to
q(p). The monopolist does research to lower the cost of product of
its product. If it takes R hours of research, then the unit cost of
production is C(R). Each hour of research cost 1 to complete. To
summarize, profits are pq(p)-q(p)c(R)-R+10. Which the monopolist
maximizes by choosing p and R. a) write the first order conditions
for the monopolist's optimisation problem. Elasticity of demand is
defined as e ≡-(q'(p)/q(p))p and describes, if price increase by
1%, by how much quantity demanded falls.