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Rate of Output

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ZZZ, Inc. operates in a monopolistically competitive industry. Its demand curve can be written as P = 160 - Q and its short run total cost curve is equal to TC = 1000 + Q^2. What is the rate of output that maximizes ZZZ, Inc.'s short run profits?

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Solution Summary

Th e rate of output for ZZZ Inc is determined. The short run profits are determined.

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In order to maximize short run profits, you'll need to figure out what quantity will maximize total profit.

We find total revenue as price time quantity. Let's first solve ...

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