Estimating Demand and Total Revenue 1.(a) Use the following function: QW= 400-2p, to estimate the maximum total revenue. (b) Plot the average, marginal, and total
Estimating Demand and Total Revenue
1.(a) Use the following function: QW= 400-2p, to estimate the maximum total revenue.
(b) Plot the average, marginal, and total revenue curves
(c) What is the maximum total revenue in monetary terms?
(d) Suppose marginal cost is $5, what will be the profit-maximizing price? Remember to use the MC=MR rule and then solve for price
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
1a Q 400 2p The inverse deposal functions x P 200 05Q TR P x Q 200Q ...
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Step: 2
Step: 3
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Authors: Tyler Cowen, Alex Tabarrok
3rd edition
1429278390, 978-1429278416, 1429278412, 978-1429278393
