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Patent and Marginal Revenue

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Please see the attached PDF for both questions. I really only need Q2, but both would be nice.

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Solution Summary

In this solution, marginal revenue curve is drawn for a patent product.

See Also This Related BrainMass Solution

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?

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