The manager of a monopoly firm obtained the following estimate of the demand function for its output:
Question:
The manager of a monopoly firm obtained the following estimate of the demand function for its output:
Q = 2,600 − 100P + 0.2M − 500PR
From an econometric forecasting firm, the manager obtained forecasts for the 2017 values of M and PR as, respectively, $20,000 and $2. For 2017 what is:
a. The forecasted demand function?
b. The inverse demand function?
c. The marginal revenue function?
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Step by Step Answer:
With given P R 2 and M 20000 we have to put these values in estimated demand function w...View the full answer
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Related Book For 
Managerial Economics Foundations of Business Analysis and Strategy
ISBN: 978-0078021909
12th edition
Authors: Christopher Thomas, S. Charles Maurice
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