Question: Demand function is Q = 10000 - 4P 200PR Where: Q = quantity demanded in units P = price in dollars PR = number of

Demand function is Q = 10000 - 4P 200PR

Where: Q = quantity demanded in units

P = price in dollars

PR = number of YouTubers who positively review my watch

Following values: P = $400 PR = 10 In addition, suppose MC is $300.

a. Derive the firm's current demand curve and calculate and interpret the firm's current price elasticity of demand. Be as precise as you can with your elasticity interpretation.

b. Given you answer in b, should the firm increase or decrease output in order to maximize profits (NOT revenues)? Explain on a well labeled graph. indicate the current output level as well as the profit maximizing output level.

c. What is the profit maximizing output and price?

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