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(Please show all work and remember to label all graphs!) 1) Marginal Analysis You are the manager of GetMoney Inc and you produce cardboard boxes.
(Please show all work and remember to label all graphs!) 1) Marginal Analysis You are the manager of GetMoney Inc and you produce cardboard boxes. Suppose that you hired a consultant for your company to estimate the demand for your cardboard boxes. You collect data on the price and quantity of boxes sold and send it to your consultant, who then estimates the inverse demand equation as P = 6 Q.
- What are the maximum revenues that you can earn based upon this information?
- At the quantity that maximizes revenues, are marginal revenues positive, negative, or zero? At this quantity, would you recommend increasing production in order to increase revenues? Why or why not. (Please use graphs to support youranswer).
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