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Question: The demand function for a pack of bathroom paper is given by D(:r) = 50 - 0.2332. where :3: is price in dollars for 1 g :r g 15. The demand is U for all .7: 15.
(a) Find the revenue function and the marginal revenue function.
(b) Use the revenue function to ?nd the price for which the revenue is maximized. Make sure you show that your maximum is in fact a maximum.
(c) Explain how you can use the graph of the revenue to estimate where the maximum marginal revenue occurs. (You can sketch the graph of the revenue function on Desn1os. You do not need to ?nd the point where maximum marginal revenue occurs; you need to explain how you would use the graph of revenue to ?nd it.)
(d) Find the elasticity function.
(C) Use the elasticity function to find the price for which the revenue is maximized. (Your answer should agree with answer in part b. If it does not, check your math!)
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