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The demand and total cost functions of a good are and respectively. (a) Find expressions for ????, ??, ???? and ???? in terms of ??.
The demand and total cost functions of a good are
and
respectively.
(a) Find expressions for ????, ??, ???? and ???? in terms of ??.
(b) Solve the equation and hence determine the value of ?? which maximizes profits.
(c) Verify that, at this point of maximum profit, .
4P + Q - 16 = 0
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