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War Game, Inc., produces games that simulate historical battles. The market is small but loyal and War Game is the largest manufacturer. It is thinking about introducing a new game. War Game forecasts demand for this game to be P=50-.002Q, where Q is unit slaes per year and P is price in dollars. The cost of manufacturing is C=140,000+10Q.
A. If War Game wants to maximize profit, calculate optimal output and price.
B. If their goal is to maximize revenue, what is optimal price and quantity?
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