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Dr. Leona Williams, a well-known plastic surgeon, has a reputation for being one of the best surgeons for reconstructive nose surgery. Dr. Williams enjoys a rather substantial degree of market power in this market. She has estimated demand for her work to be:
where Q is the number of nose operations performed monthly and P is the price of a nose operation.
a. What is the inverse demand function for Dr. Williams' services?
b. What is the marginal revenue function?
c. If the doctor wishes to maximize her profit, how many nose operations should she perform each month?
d. What price should Dr. Williams charge to perform a nose operation?
e. How much profit does she earn each month?
suppose that a firm is currently charging 45 for its product. the firm knows that its marginal cost of producing the
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use stata to analyze the data listed in the file anovadata.xlsx. the data are changes in fat-free mass in women after
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