a - If a firm's demand function is given, such as, Q = a CP, where Q is the quantity demanded and P is the price, to find the profit maximizing output - price of the firm, do we always have to take the inverse demand function to find MR orbcan we directly use the demand curve? Kindly provide example for both case scenario to explain the answer.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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a -
If a firm's demand function is given, such as, Q = a
CP, where Q is the quantity demanded and P is the
price, to find the profit maximizing output - price of the
firm, do we always have to take the inverse demand
function to find MR orbcan we directly use the demand
curve? Kindly provide example for both case scenario to
explain the answer.
Transcribed Image Text:a - If a firm's demand function is given, such as, Q = a CP, where Q is the quantity demanded and P is the price, to find the profit maximizing output - price of the firm, do we always have to take the inverse demand function to find MR orbcan we directly use the demand curve? Kindly provide example for both case scenario to explain the answer.
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