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Restaurant Marketing Services, offers affinity card marketing and monitoring systems to fine dining establishments nationwide. Fixed expenses are $600,000 per year. Sponsoring restaurants are paid $60 for each card sold, and card printing and distribution costs are $3 per card. This means that RMS's marginal costs are $63 per card. Based on recent sales experience, the estimated demand curve and marginal revenue relations for are:
P=$130-$0.000125Q
MR=dTR/dQ =$130-$0.00025Q
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