Question
a.The demand function for a firm with market power is estimated to be where Q is output, P is price per unit, M is income,
a.The demand function for a firm with market power is estimated to be
where Q is output, P is price per unit, M is income, and PR the price of a related good.
The manager estimates the values of M and PR will be RM32,000 and RM4, respectively, in 2008. For 2008, find the following functions:
i.Demand function [2 Marks]
ii.Inverse demand function[2 Marks]
iii..Marginal revenue function[2 Marks]
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Managerial Economics and Business Strategy
Authors: Michael Baye, Jeff Prince
9th edition
9781259896422, 1259290611, 1259896420, 978-1259290619
