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9 March, 15:36

You are the manager of a monopolistically competitive firm, and your demand and cost functions are given by q = 36 - 4p and c (q) = 124 - 16q + q2.

a. find the inverse demand function for your firm's product.

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  1. 9 March, 18:16
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    As given in the item above, the demand function is,

    q = 36 - 4p

    To determine the inverse function,

    Replace every q with p and every p with q and solve for the new q’s as shown below.

    p = 36 - 4q

    Simplify the equation to determine the value of q.

    4q = 36 - p

    q = 9 - p/4

    Answer: q = 9 - p/4
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