Question: 7. A manager faces two separate markets. The estimated demand functions for the two markets are and a. Find the inverse marginal revenue functions. b.

7. A manager faces two separate markets. The estimated demand functions for the two markets are and

a. Find the inverse marginal revenue functions.

b. Find the total marginal revenue functions.

c. Draw a graph of MRA, MRB, and MRT. Check your algebraic derivation of total marginal revenue.

d. If the manager has a total of 650 units to sell, how should the 650 units be allocated to maximize total revenue?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Managerial Economics Questions!

Q:

Please solve this question Entries for Stock Dividends Healthy Life Co. is an HMO for businesses in the Fresno area. The following account balances appear on Healthy Life's balance. sheet: Common...

Q:

Help needed! Question 1 A manager faces two separate markets. The estimated demand functions for the two markets are QA = 1600 - 80PA QB = 2400 - 100PB age Find the inverse marginal revenue...

Q:

manager faces two separate markets. The estimated demand functions for the two markets are Q A = 1,600 80P A and Q B = 2,400 100P B a. Find the inverse marginal revenue functions. b. Find the total...

Q:

Suppose the manager in Technical Problem 7 decides to price-discriminate. The long run marginal cost is estimated to be LMC = 4.5 + 0.005Q a. How many units should the manager produce and sell? b....

Q:

(a) The following quotation appeared in a Wall Street Journal article on the battle for market share in the automobile industry in 2000 : "The huge fixed costs involved in developing vehicles and...

Q:

(b) A manager faces two separate markets. The estimated demand functions for the two markets are: QA=1,60080PA and QB=2,400100PB The manager decides to price-discriminate. The long-run marginal cost...

Q:

Suppose the manager in Technical Problem 7 decides to price-discriminate. The long run marginal cost is estimated to be LMC = 4.5 + 0.005Q a. How many units should the manager produce and sell? b....

Q:

MB 515: Economic Theory and Application Problem Set 6 6.1 At Silverado Golf Club, the demand for rounds of golf by each one of the 140 identical senior golf members is given by D. in the figure...

Q:

MB 5 1 5 : Economic Theory and Application Problem Set 6 6 . 1 At Silverado Golf Club, the demand for rounds of golf by each one of the 1 4 0 identical senior golf members is given by \ ( D _ { \...

Q:

A monopolist faces two separate markets with the demand curves given as D 1 (p 1 ) = y 1 = 100 p 1 D 2 (p 2 ) = y 2 = 1002 p 2 with D 1 = y 1 and D 2 = y 2 giving the quantities and p giving the...

Q:

Please fine below, thanks a lot ! 1 . Perfect Competition Consider a market that faces the following market supply and demand functions Q3 = 2+2p Q\" = 16-39 where identical rms face the total cost...

Q:

Millie Co. completed its first year of operations on December 31, 2014, with pre-tax financial income of $400,000. Millie accrued a contingent liability of $900,000 for financial reporting purposes;...

Q:

The current price of valves is $550 and the market for valves is in equilibrium at 20,000 units per year. There are no market distortions in this market. The market for valves is represented by a...

Q:

A firm must decide whether to build, borrow, or buy to answer the question of

Q:

Calculate the unknown term in the following proportions. t : 3/4 = 7/8 : 15/16