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A monopolistically competitive firm has short-run production function given by Q = 5L0.8 , Assume the wage rate is $12 and the firm's fixed cost is $500. If demand for the firm's output is P = 350 - 4Q
(a) Determine the firm's profit maximizing level of output, price, and employment.
(b) Determine the firm's profit.
As the business consultant for this specific business precisely what would you recommend based on all the information you have just learned about monopolistic competition?
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