Use the graph to answer (A) through (F) 80 70 60 50 40 30 20 10...

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Use the graph to answer (A) through (F)

80 70 60 50 40 30 20 10 State the equation for the demand curve (inverse demand function) shown in the graph above using the format P-a-bQ a. b. State the equation for the demand function implied in the graph ysing the format Q-c-dP. c. Find the equation for Total Revenue, where TR is a function of output (Q) d. Find the equation for Marginal Revenue, where MR is a function of output (Q) IfMC-20, find the output level that maximizes Total Revenue: e. f IfMC-20, find the output level that maximizes Total Profit

business economics

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Answer 1

Answer #1

a. P= 80 - 10Q

When Q= 0 P= 80

b= slope= change in price / change in quantity = 10/1= 10

b. 10Q= 80 - P

Q= 8 - 0.1P

c. TR= PQ= 80Q - 10Q^2

d. MR= 80 - 20Q

e. Total revenue is maximized at MR= 0

80 - 20Q= 0

Q= 4

f. Profit is maximized at MR=MC

80-20Q = 20

Q= 3

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Answer 2

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