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QUESTION

price quantity revenue cost profit 10.99 759750 8349653 10057613 -1707961 10.99 788820 8669132 10279663 -1610531 10.99 781239 8585816 10182809...

I need to finish this project but I am stuck. I have the Demand estimate equation but that's about it. I tried doing some graphs but I just couldn't do anything else.

  • Estimate the demand curve from the data provided. Use regression analysis to estimate quantity demanded as a function of the price. -> Q=1027807.6539-25265.2P
  • Estimate the monopolist's cost function. Again, use regression analysis and the data provided.
  • Develop a price recommendation that will maximize profits, assuming that market conditions and production technology remains the same.
  • Develop an alternate price recommendation based on a different, forecasted cost structure. More specifically, propose a profit maximizing price if soon the cost structure will feature a fixed cost of $3,200,000 and a constant marginal cost of $7 per unit of output.
  • State your recommendations and explain how you arrived at them.
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