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A toy manufacturer keeps a small inventory of miniature motors it uses to build toy cars. The manufacturer learns that the price of these same

A toy manufacturer keeps a small inventory of miniature motors it uses to build toy

cars. The manufacturer learns that the price of these same miniature motors has just

increased dramatically, so if he chose to, he could now resell these at a price far above

the price that was originally paid for those in inventory. If this firm is a profitmaximizer

and the market for its toy cars is competitive, the owner should choose to

produce a quantity of toy cars, q, where the market price for toy cars

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