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Firm's total cost function is of the form of TC=2Q + 14 (i.e., a firm's fixed costs are 14 and the variable costs are 2
Firm's total cost function is of the form of TC=2Q + 14 (i.e., a firm's fixed costs are 14 and the variable costs are 2 per unit). The corresponding profit function is of the form = 2 + + . The firm makes a loss of 6 when Q=1 and a profit of 4 when Q=6. a) (10 p.) Find , and . b) (10 p.) Find the break even points and hence the find the maximum profit. c) (10 p.) Find an expression for total revenue and deduce the demand function
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