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    Calculating maximum profit made by a coal producer

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    A coal producer has the following total cost function:


    where Q is tons of coal produced per month. Calculate the firm's maximum profit if coal price is stable at $20/ton.

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    Marginal Cost=MC=d(TC)/dQ=5+0.0006Q

    Since price is stable at $20/ton,
    Marginal Revenue (MR)=Price=$20

    A ...

    Solution Summary

    Solution depicts the steps to calculate maximum profit made by a coal producer in the given case.