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A firm produces q tons of chemicals that they sale a price p = 100 per ton. The total cost function is given by: T

A firm produces q tons of chemicals that they sale a price p = 100 per ton. The total cost function is given by:

T C = 100 + 0.1q3 0.2q2

Write down the profit function

Derive the marginal profit function. How do you interpret

this function?

For what value of q is the marginal profit 0? Would it make

sense for a company to produce more than this quantity?

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