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In the market for fast-food hamburgers, a perfectly competitive market, the current equilibrium price is $3 per burger. Burger Prince, one of the many producers
In the market for fast-food hamburgers, a perfectly competitive market, the current equilibrium price is $3 per burger. Burger Prince, one of the many producers of burgers, has a daily short-run total cost given by = 190 + 0.2 + 0.00252, where Q measures the number of hamburgers. Burger Prince's corresponding marginal cost is = 0.2 + 0.005.
How many hamburgers should Burger Prince produce each day to maximize profits? How much profit will they earn each day?
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