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A. Total Revenue Q1 Suppose you have utilized the average value of sales and sensitivity (slope) parameter to estimate the following market demand (Q) function
A. Total Revenue Q1 Suppose you have utilized the average value of sales and sensitivity (slope) parameter to estimate the following market demand (Q) function for your company: Q = 1000 2P ; (i) Redene the inverse function in terms of price. (5 Points) (ii) Specify the total revenue (TR) function; [TR=P*Q]. (5 Points) (iii) Derive the marginal revenue (MR) function; [MR = ] (5 Points). a'Q (iv) What is the prot maximizing quantity [the quantity when MR=0]? (10 Points). (V) What is the maximum total revenue that your rm could obtain? (5 Points). (vii) Vertically plot the demand and marginal revenue graph, and the total revenue graph with the maximum revenue that could be obtained. (15 Points)
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