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Question - Gatheru and Kabiru Certified Public Accountants have recently started to give business advice to their clients. Acting as consultants, they estimated the demand curve of a client's firm to be: AR = 200 - 8Q Where AR is average revenue in millions of shillings and Q is the output in units. Investigations of the client firm's cost profile shows that marginal cost (MC) is given by: MC = Q2 - 28Q + 211 (in millions of shillings). Further investigations have shown that the firm's cost when not producing output is Sh.10 million.
Required -
(i) Compute the equation of total cost?
(ii) Compute the equation of total revenue?
(iii) Compute an expression for profit?
(iv) Compute the level of output that maximizes profit??
(v) Compute the equation of marginal revenue?
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