The demand function (inverse) and the marginal cost function of a manufacturing-supply firm are as follows:
P = -4.7Q + 240
MC = 2.6Q
(a) Write the total revenue function from the inverse demand function shown. (TR = Q x P)
(b) Compute the first derivative of the TR function – i.e., the marginal revenue function (MR).
(c) Compute profit-maximizing Q*.
(d) Compute selling price P* at profit-maximizing Q*.
(e) Compute total revenue at Q*.