What output level maximizes firm profits

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You are the manager of Rountree Writer Inc. (a firm that sells a unique word processing software program). The firm operates as a monopoly.

Your demand and cost functions are given by:

P(Q) = 300 - 10Q

TC(Q) = 1000 + 5Q

Answer the following questions.

1. What output level maximizes the firm's profits?

2. What is the corresponding price?

Reference no: EM133338317

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