What is the firm inverse demand function

Reference no: EM1370441

Assume you're the manager of Alpha Enterprises, a firm that holds the patent that makes it the exclusive manufacturer of bubble memory chips. Based on the estimates provided by the consultant, you know that the relevant demand and cost functions for bubble memory chips are Q = 25 - .5P; C = 50 + 2Q.

a. What is the firm's inverse demand function?

b. What is the firm's marginal revenue when producing 4 units of output?

c. What level of output would maximize profits?

d. At what price would you maximizing profits?

e. What will be the dollar level of your profits?

Reference no: EM1370441

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