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Happy Bubble Tea, Inc., which has been given a limited license, runs a network of bubble tea shops in Country A. Under the current business

Happy Bubble Tea, Inc., which has been given a limited license, runs a network of bubble tea shops in Country A. Under the current business model, Happy Bubble Tea, Inc.'s marginal cost and average total cost per cup are both $16. This company's inverse demand function is P = 40 - 0.004Q. 1(a) With the aid of a diagram, calculate the profit-maximising level of output and price and profit. 1(b) What procurement method will you suggest Happy Bubble Tea to purchase the tea bags it used for making its bubble tea from its suppliers? Explain

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