Question
A monopolistic firm's marginal revenue function is 21g +479 q +4q+3 dr dq = where output (=demand) is measured in 100s of units/week and
A monopolistic firm's marginal revenue function is 21g +479 q +4q+3 dr dq = where output (=demand) is measured in 100s of units/week and revenue is measured in $1000s/week. The firm's marginal cost function is constant, de/dq = 2, and cost is also measured in $1000s/week. If the demand (= output) for the firm's good increases from 1200 units/week to 1600 units/week, then their weekly revenue increases by [Select] and their weekly profit changes by [Select] Comment: pay attention to the units. 2
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Economics for Managers
Authors: Paul G. Farnham
3rd edition
132773708, 978-0133561128, 133561127, 978-0132773706
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