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Suppose the Indiana Power Company wishes to maximize profits. The cost, demand and revenue functions have been determined and given below. Determine Indiana Power's profit maximizing price, output and level of profits.
Q = output level
P = Price
TC = Total Cost = 20 + 5Q + Q2
P = 25 -Q Demand Function
P=
Q =
Profit =
The second derivative =
Since the second derivative is (enter positive or negative) we have a (enter maximum or minimum)
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