1.The Graduate Business Administration (GBA) program at Lucky University estimates that the (inverse) demand curve for new admissions into its unique "values based" MBA program is:

Q = 10.25 - P/8

Where Q are number of new students admitted each fall in units and P is price per credit hour in $100 units. GBA estimates its cost function to be: TC = -36 + 2Q + 2Q2Q2so that its MC curve is: MC =2 + 4Q also in $100 units. Derive an expression for GBA's marginal revenue curve. (Hint: MR curve is same as demand curve with twice as steep a negative slope).

1.Derive an expression for GBA's marginal revenue curve.

2.Assuming that GBA is the only business school in the world that offers this particular kind of MBA, and that it wants to maximize its short-term return (to subsidize other LU programs) per credit hour on this program, what price should it charge?

3.What would be GBA's fall quarter per-credit hour tuition return (revenue minus costs) for the "values based" MBA degree at this price?

4.How would you explain this to GBA administrators who want explanations in words, not equations?