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Suppose a company creates its own differentiated type of sneaker and is thus considered a monopolistically competitive firm. This firm has a constant marginal cost
Suppose a company creates its own differentiated type of sneaker and is thus considered a monopolistically competitive firm. This firm has a constant marginal cost curve. For each unit of output that the monopolistically competitive firm produces, it costs an additional$30
. The firm's marginal revenue curve isMR=2002Q, whereQis the quantity produced. The firm's perceived demand curve isP=2001Q
What is the monopolistically competitive firm's profit-maximizing output and price? Write the exact answer. Do not round.
Quantity = ?
Price = ?
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