2. A firm has a cost function of C = 1000+20Q + 1/10Q2 and has a demand function asshown in the graph below:1009080707060605040302010010 203040 5060 708090100Quantity (Q)-P (demand)a) Estimate the firm's demand function. You may assume that the slope is a wholenumber, and the intercept is a multiple of 10. (1 mark)b) Find the firm's revenue function. You do not need to draw it. (2 marks)c) Find the marginal revenue function, and draw it on a copy of the graph. (3 marks)d) Find and draw the marginal cost function. (3 marks)e) Use your results from parts (c) and (d) to find the profit-maximising level of output.(3 marks)f) Find the market price at this level of output. (2 marks)

(a) : The estimated demand function would be: P = 100−Q (b) : The firm's revenue function (R) is : R…

Answered: 2. A firm has a cost function of C =…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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