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During recent years, MicroChips Corporation has enjoyed substantial economic profits derived from patents covering a wide rang of inventions and innovations for microprocessors used in high-performance desktop computers. A recent introduction, the Penultimate, has proven especially profitable. Market demand and marginal revenue relations for the product are as follows:
P=$5,500-$0.005QMR= dTR/dQ=$5,500-$0.01Q
Now the AVC are constant at $4,500 per unit.
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