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firm had demand function given by Qd=1000-10p. Its cost function given by C= 150 +20 Q
A- write an equation for the inverse demand function.
B- write an equation for the profit function
C-if the firm wants to maximize its sales revenue ,how many units should it produce and what price should it charge?
D- if the firm wants to maximize its profits , how many units should it produce and what price should it charge? what are its profits
E-suppose the firm is facing an output constraint - specifically , the maximum allowable output is 480 units - that is Q<= 380 set up a Lagrangian equation and solve for the optimal or profit maximizing output subject to the constraint. what price should the firm charge- given the constrain? Give an interpretation of the largrangian Multiplier. what are the profits the constrained optimum?
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Elucidate what have noticed is that there is a high demand for Louis Vuitton bags even though they are so expensive.
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Compute the price elasticity of demand.
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