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Unformatted text preview: verify the answer on the graph. 6. Define a function f H x L = a + b x + c x . Find the coefficients a , b , and c such that f I 1 M = 1, f I 2 M = 1.2, and f I 3 M = 1.5. 7. Find where the minimum value of e x-x 3 + x occurs for 0 x 5. Plot the function and check you have found a minimum. 8. Define a linear demand function such that the demand at price p = 10. is a quantity q = 2000. and such that the demand has an elasticity at this price of = q p p q = -2.5. 9. Assuming the above demand and a constant, but unspecified, marginal cost mc, write down the condition that should be satisfied for a monopoly firm supplying this demand at a price p to be profit maximizing. 10. Suppose that p = 10. is in fact the profit maximizing price. Determine what the marginal cost of the firm must be....
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This document was uploaded on 10/28/2011 for the course MATH 256 at Vanderbilt.
- Spring '11