You are the manager of a monopolistically competitive firm, and your demand and cost functions are given by Q = 36 – 4P and C(Q)

Question

3 years ago

12

You are the manager of a monopolistically competitive firm, and your demand and cost functions are given by Q = 36 – 4P and C(Q)

= 4 + 4Q + Q2.
(a) Find the inverse demand function for your firm’s product. P = - Q
(b) Determine the profit-maximizing price and level of production.

Business

1 answer:

inysia [295] · Answer 1 · 2022-08-24T02:10:31+03:00

Answer

The answer and procedures of the exercise are attached in the following images.

Explanation

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.