If demand function is given as the following:
Qz = 230 -2.75 Pz + 0.5 I + 1.2 Pm + 0.6A
Where Qz is quantity of Good z sold, Pz is price of Good z per unit, I is per capita income, Pm is price of competitor and A is the amount of advertising spent.
Current values: Pz= RM 55 I= RM 9000 Pm= RM 50 A =RM 12,000.
a)Determine the equation for demand, total revenue and marginal revenue curve.
b)Determine the total revenue maximizing price and quantity.
"Q_Z=11990-2.75p_Z"
"TR=(11990-2.75p_Z)p_Z"
"MR=11990-5.5p_z"
"p_Z=2180"
"Q_Z=5995"
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