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You are the manager of a monopolistically competitive firm. The inverse demand for your product is given by P = 200 - 10Q and your marginal cost is MC = 5 + Q.
a. What is the profit-maximizing level of output?
b. What is the profit-maximizing price?
c. What are the maximum profits? Please break down how to get the maximum profits.
d. What do you expect to happen to the demand for your product in the long run? Explain
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