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Suppose that the revenue and cost functions for a firm are given as follows TR = 70q - q 2 TC = q 2 +

Suppose that the revenue and cost functions for a firm are given as follows

TR = 70q - q2

TC = q2 + 30q + 100

a. Find the quantity that maximizes profit. (find q that's at the top of the mountain)

b. Verify that the q you've found in a. is a max; rather than a min. (2nd order condition).

Notes: Profit = Total Revenue - Total Cost. Show all steps in your calculations.

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