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Calculate the maximum profits the firm makes

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Reference no: EM132919974

A firm's demand curve in period 1 is Q=25 - P. Fixed costs are 20 and marginal costs per unit are 5.

a. Derive equations for total revenue and marginal revenue.

b. At what output will marginal revenue be zero?

c. At what price will total revenue be maximized?

d. At what price and output will profit be maximized?

e. Calculate the maximum profits the firm makes.

Reference no: EM132919974

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