1. Use the graph below to answer the following:..●.P•16141210864210203040506070State the equation for the demand curve (inverse demand function) shown in the graphabove using the format Px = a bQx:1• Find the equation for Marginal Revenue, where MR is a function of output (Q):State the equation for the demand function implied in the graph using the format Qx = c-dPx:Find the equation for Total Revenue, where TR is a function of output (Qx):If MC = $4, find the output level that maximizes Total Revenue:80If MC= 4, find the output level that maximizes Total Profit:W

1. Use the graph below to answer the following: . . P ● 16 14 12 10 8 6 4 2 10 1 20 30 40 *** 50 60 70 State the equation for the demand curve (inverse demand function) shown in the graph above using the format Px = a -bQx: 1 • Find the equation for Total Revenue, where TR is a function of output (Qx): State the equation for the demand function implied in the graph using the format Qx=c- dPx: Find the equation for Marginal Revenue, where MR is a function of output (Q): If MC= $4, find the output level that maximizes Total Revenue: 80 • If MC = 4, find the output level that maximizes Total Profit:

1. Use the graph below to answer the following: . . P ● 16 14 12 10 8 6 4 2 10 1 20 30 40 *** 50 60 70 State the equation for the demand curve (inverse demand function) shown in the graph above using the format Px = a -bQx: 1 • Find the equation for Total Revenue, where TR is a function of output (Qx): State the equation for the demand function implied in the graph using the format Qx=c- dPx: Find the equation for Marginal Revenue, where MR is a function of output (Q): If MC= $4, find the output level that maximizes Total Revenue: 80 • If MC = 4, find the output level that maximizes Total Profit:

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter11: Profit Maximization

Section: Chapter Questions

Problem 11.7P

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Question

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1. Use the graph below to answer the following:
.
.
●
.
P
•
16
14
12
10
8
6
4
2
10
20
30
40
50
60
70
State the equation for the demand curve (inverse demand function) shown in the graph
above using the format Px = a bQx:
1
• Find the equation for Marginal Revenue, where MR is a function of output (Q):
State the equation for the demand function implied in the graph using the format Qx = c-
dPx:
Find the equation for Total Revenue, where TR is a function of output (Qx):
If MC = $4, find the output level that maximizes Total Revenue:
80
If MC= 4, find the output level that maximizes Total Profit:
W

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