Question: a.The demand function for a firm with market power is estimated to be where Q is output, P is price per unit, M is income,

a.The demand function for a firm with market power is estimated to be

where Q is output, P is price per unit, M is income, and PR the price of a related good.

The manager estimates the values of M and PR will be RM32,000 and RM4, respectively, in 2008. For 2008, find the following functions:

i.Demand function [2 Marks]

ii.Inverse demand function[2 Marks]

iii..Marginal revenue function[2 Marks]

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