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Marginal Revenue and Marginal Cost
A firm has marginal revenue M R = $70 and marginal cost M C = $20 + Q. Fixed costs are $175.
(1) If the firm is currently producing 30 units, what are its marginal cost and marginal revenue at the current output level?
(2) Is the firm maximizing profits? If so, how can you tell? If not, what can the firm do to increase profits?
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