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a) A firm is a perfectly competitive producer and sells A and good B at RM100 and RM80, respectively.The total cost of producing these goods
a) A firm is a perfectly competitive producer and sells A and good B at RM100 and RM80, respectively.The total cost of producing these goods is given by TC=2Q2A+2QAQB+QB2, where QA and QB denote the output level of good A and good B, respectively.
I) Find the firm's total profit function
ii)Calculate the value of QA and QB Which maximise profit.
iii) Using the second order condition (SOC) prove that the profit level is at a maximum
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