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Profit Maximization

Q P TR MR TC MC (profit) (marginal Profit)
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0 $230.00 $0 $-- $0 $-- $0 $--
1 210.00 10 200
2 380.00 20 150
3 170.00 130.00 30 450
4 600.00 100 40 50
5 130.00 160 60 490 -10
6 660.00 430
7 630.00 -30 310 -110
8 70.00 -70 400 90 160 -160

A. At what output (Q) level is profit maximized?
B. At what output (Q) level is revenue maximized?
C. Discuss any differences in your answers to parts A and B. Please show work

Solution Preview

See the attached file. To complete the table, just take things one step at a ...

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