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Considerthe cost function
C(Q) = 400 + 0.5Q2
for RussCoto produce its new Phone. Using that cost function for the Phone, determinethe profit-maximizing output, price and profit (or loss) for the RussCoPhone, and discuss its long-run implications, under three alternative scenarios:
a. RussCoPhone is a perfect substitute with a similar product offered by Apple, Samsung and several other Phones that have similar cost functions and that currently sell for $400 each. 1.5 Points
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