Please see the attached PDF for both questions. I really only need Q2, but both would be nice.© BrainMass Inc. brainmass.com October 25, 2018, 9:05 am ad1c9bdddf
In this solution, marginal revenue curve is drawn for a patent product.
Demand and cost functions for a function with a patent
2. Suppose you are the manager of Alpha Enterprises, a firm that holds a patent that makes it the exclusive manufacturer of bubble memory chips. Based on the estimates provided by a 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?