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What level of output should you choose to maximize profits

Problem: You are the manager of a monopolistically competitive firm. The present demand curve you face is P = 100 - 4Q. Your cost function is C(Q) = 50 + 8.5Q² (That's Q squared).

1. What level of output should you choose to maximize profits?

2. What price should you charge?

3. What will happen in your market in the long run? Explain.

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Microeconomics: What level of output should you choose to maximize profits

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Solution Preview :

Prepared by a verified Expert

Microeconomics: What level of output should you choose to maximize profits

Reference No:- TGS01748741

Have a Question? (oR Write a Review)

Recent Questions Asked Microeconomics

Q : Aggregate demand and supply

Q : Competitive market analysis

Q : What are the profit maximizing price and output

Q : What ajax profit per camera in the digital camera market

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Solution Preview :

Prepared by a verified Expert

Microeconomics: What level of output should you choose to maximize profits

Reference No:- TGS01748741

Recent Questions Asked Microeconomics

Q : Aggregate demand and supply

Q : Competitive market analysis

Q : What are the profit maximizing price and output

Q : What ajax profit per camera in the digital camera market

Q : What level of output should you choose to maximize profits

Q : Macroeconomic conditions and company performance

Q : Calculate the arc cross elasticity between products

Q : Maximizing profit or minimize losses

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