Use the following equation to demonstrate why a firm producing at the output level where MR =

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Use the following equation to demonstrate why a firm producing at the output level where MR = MC will also be able to maximize its total profit (i.e., be at the point where marginal profit is equal to zero).
P= 170 - 5Q
TC = 40 + 50Q + 5Q2

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Managerial Economics

ISBN: 978-0133020267

7th edition

Authors: Paul Keat, Philip K Young, Steve Erfle

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Question Posted: Jun 20, 2016 12:34 AM

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Use the following equation to demonstrate why a firm producing at the output level where MR =

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Setting the derivative of the total cost function equal to the derivative of the t...View the full answer

Managerial Economics

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