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An amusement park has the following demand function: Q=180 - 5P and the firm's cost equation is given by C = 200 + 20Q. Show
An amusement park has the following demand function: Q=180 - 5P and the firm's cost equation is given by C = 200 + 20Q. Show all your calculations (a) Find the inverse demand function (1.5 points) b) Derive the revenue function (1.5 points) c) Derive the marginal revenue and marginal cost (2 points) d) Determine the firm's optimal quantity and price. (2 points) e) Using the optimal quantity derived in part (d), what is the profit? (1 points)
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