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Use the following information for a monopoly firm to answer questions 27 through 29. Assume that Q equals the level of output and all costs are economic costs.
Total Revenue = 250Q - 0.5(Q squared)
Marginal Revenue = 250 - Q
Total cost = 2,000 + 50Q + 0.5(Q squared)
Marginal cost = 50 + Q
At the profit-maximizing or loss-minimizing output level, economic profit would equal:
Under these conditions, the firm should produce an output of:
At an output of 200 units, total costs equal:
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