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The market demand function of a firm is given by
4P + Q - 16 = 0
And the AC function takes the form
AC = 4/Q + 2 - 0.3Q + 0.05Q2
Find the Q which gives:
(a) Maximum revenue
(b) Minimum marginal costs,
(c) Maximum profit
Use the second derivative test in each case.
A firm is currently operating where the MC of the last unit produced = $84, and the MR of this unit = $70. What would you advise this firm to do?
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After I figure a table what do I do with it? I have no book and no study materials to answer my question
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