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Please assist with these questions. Estimate of the demand: Q = 20000 + -100P + 0.50M + -300Pr Average variable cost function: AVC = 20
Please assist with these questions.
Estimate of the demand:
Q = 20000 + -100P + 0.50M + -300Pr
Average variable cost function:
AVC = 20 + -1.20Q + 0.03Q^2
Assume that M = $40,000, Pr = $4, and Fixed Costs = $8,000.
- What is the firm's inverse demand function?
- What is the firm's marginal revenue function?
- What is the firm's estimated marginal cost function?
- What is the firm's optimal level of production (how many units of the product should they produce)?
- What is the firm's optimal price?
- Should Tay's Technology shut down in the short run? Why or why not?
- What is Tay's expected profit?
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