Question: Suppose you are the manager of Alpha Enterprises – a firm that holds a patent that makes it the exclusive manufacturer of bubble memory chips. Based on the estimates provided by a consultant, you know that the relevant demand and cost functions for bubble memory chips are \[Q=25-.5P\]; \[C=50+2Q\].

(a) What is the firm’s inverse demand function?

(b) What is the firm’s marginal revenue when producing 4 units of output?

(c) What are the levels of output and price when you are maximizing profits?

(d) What will be the level of your profits?