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Question 4 (b) Ebo is the owner of medium-sized company that assembles personal computers in Ghana. He purchase most of the components for the company

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Question 4 (b) Ebo is the owner of medium-sized company that assembles personal computers in Ghana. He purchase most of the components for the company such as random access memory (RAM) on a competitive market. In order to maximise profit in the short run, he employed an economist to estimate the demand curve for his product as: 3Q = 20 - 0.4P. Suppose the firm has a fixed cost of 100 and variable cost per unit function as 1.50 - 31 + 130 , Where Q is number of laptops produced and P is the price per computer: i. Determine the number of laptops that maximizes the company's profit. 8 marks ii. How much should the firm charge for one computer? 1 mark iii. Find the total profit at the profit maximizing level of output 1 mark iv. Should the firm shut down or continue to produce? 2 marks

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