You are the manager of a monopolistically competitive firm, and your demand and cost functions are given by q = 36 – 4p and c(q) = 124 – 16q + q2. a. find the inverse demand function for your firm's product.

As given in the item above, the demand function is,

 

   q = 36 – 4p

 

To determine the inverse function,

 Replace every q with p and every p with q and solve for the new q’s as shown below.

 

   p = 36 – 4q

 

Simplify the equation to determine the value of q.

  4q = 36 – p

 q = 9 – p/4

 

q = 9 – p/4

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