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34. Assume a roommate of yours set up the following profit function: 119'): Pg - C(q). He then said I think I'm all set. I'm
34. Assume a roommate of yours set up the following profit function: 119'): Pg - C(q). He then said \"I think I'm all set. I'm just going to take the firstorder condition with respect to quantity and solve for the profitmaximizing solution.\" Which of the following responses is an accurate retort to this incorrect process? A. \"When setting up your prot function, you need to make sure to include all the ways in which your choice variable can affect your profit. The way you have your prot modeled, you are implicitly making the assumption that you can sell as many units as you want at a xed price.\" B. \"When setting up your profit mction, you need to make sure to include all the ways in which your choice variable can affect your prot. Because you have not included the way that the quantity you want to sell will affect your price, you are effectively modeling a scenario in which there is a limitless supply of customers willing to pay $p for your product.\" C. \"You are going to get a very odd first order condition because you have not modeled the rm's incentives properly. You are missing the key tradeoffs that a firm has to make concerning price.\" D. All of the above are reasonable retorts
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