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Suppose you estimate the short-run total cost function to be TC = 200 + 10Q + 0.1Q 2 . Also, suppose you can sell every
Suppose you estimate the short-run total cost function to be TC = 200 + 10Q + 0.1Q2.
Also, suppose you can sell every unit produced at a $300 price so you have a marginal revenue of $300 for each unit.
If so, what is your profit maximizing quantity to produce? (Hint: solve for MC = MR or MC = $300 using your derived MC function.)
a)
2450
b)
1450
c)
2150
d)
1850
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