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1) Marginal Analysis
You are the manager of GetMoney Inc. and you produce cardboard boxes. Suppose that you hired a consultant for your company to estimate the demand for your cardboard boxes. You collect data on the price and quantity of boxes sold and send it to your consultant, who then estimates the inverse demand equation as P = 30 - 2*Q. Please also assume that you have a fixed cost of $3 and that the variable cost as estimated by your consultant is V(Q) = 10 - ??2.
a) What is the quantity that maximizes benefits based upon the above information? What are the corresponding maximum benefits that you can earn? (Please use graphs to support your answer.)
b) What are the maximum net benefits that you can earn? (Please use graphs to support your answer).
c) Is your answer to part b different from part a? why or why not?
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