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You are the manager of a monopolistically competitive firm. The inverse demand curve you face is P = 50 – 4Q. Your cost function is C(Q) = 10 + 2Q.
1. What level of output should you produce to maximize profits?
2. What is your profit and what will happen in your market in the long run? Please Explain.
q1. the supply is nerf balls qs -100000 8000p and the demand is qd 140000 2y - 7000p where q nerf balls per month
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