ECON help
a) Write down the equation for the marginal revenue curve for Serena.
(b) Redraw the graph provided above on some paper. Draw a marginal revenue curve corresponding to the demand curve on that graph. Please make sure you are sufficiently detailed in your drawing.
(c) What is the profit-maximizing quantity for Serena? What is the price Serena will charge when producing her optimal level of output? Briefly explain why. (Hint: You will need to know the equations for all the curves from the previous parts to this question.)
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A monopoly faces the demand curve P = 12 - 1.0Q,
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Problem 1e. The slope
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by 20 cents, consumers will buy one less unit. Determine what
happens to profit if price is increased by calculating the new
profit level for Fluff when price is set 20 cents higher than the
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Problem 1e. The slope
of the demand curve indicates that if the price of Fluff increases
by 20 cents, consumers will buy one less unit. Determine what
happens to profit if price is increased by calculating the new
profit level for Fluff when price is set 20 cents higher than the
profit-maximizing price.
problem 2
Probem 3
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