HWK8 - dpi/dA = P*dQ/dA dC/dQ*dQ/dA 1= 0 (P-MC)*dQ/dA = 1...

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ECON 2010 Homework #8 Q = 3000*P^(-2)*A^(0.5) C = 3*Q eta (elasticity of demand) = -2 MR = MC = dC/dQ = 3 MR = P*(1 + 1/eta) 3 = P*(1 + 1/(-2)) P = 6 // Profit Maximizing Price pi (profit) = P*Q(P,A) – C*Q(P,A) – A
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Unformatted text preview: dpi/dA = P*dQ/dA dC/dQ*dQ/dA 1= 0 (P-MC)*dQ/dA = 1 dQ/dA = 125/(3*sqrt(A)) A = 15625 // Profit Maximizing Advertising...
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This note was uploaded on 10/22/2011 for the course ECON 2010 taught by Professor Devkota during the Spring '08 term at Rensselaer Polytechnic Institute.

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