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Suppose you are the manager of a watchmaking firm operating in a competitive market. Your cost of production is given by C = 200 +2

  1. Suppose you are the manager of a watchmaking firm operating in a competitive market. Your cost of production is given by C = 200 +2 q2, where q is the level of output and C is total cost. (The marginal cost of production is 4q. The fixed cost of production is$200.)
  2. Ifthe priceofwatchesis$100,howmany watchesshouldyouproducetomaximizeprofit?

  1. What will the profit levelbe?

  1. At what minimum price willthe firmproducea positiveoutput?

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