Question: manager faces two separate markets. The estimated demand functions for the two markets are Q A = 1,600 80P A and Q B =

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 marginal revenue functions.
c. Draw a graph of MR_A, MR_B, and MR_B. 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?

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