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The short-run cost function of a company is given by the equation TC- 25000 + 75q and price-quantity equation, P # 100 -0.1q, where TC

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The short-run cost function of a company is given by the equation TC- 25000 + 75q and price-quantity equation, P # 100 -0.1q, where TC is the total cost, q is the total quantity of output and p is price. (i) Calculate the level of output which will maximize the profit and the amount of the profit at profit maximization output level .(10 marks) (ii) Should the firm continue business or shutdown? Explain. (9 marks)

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