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profit maximization

A competitive firm has a short run production function given by Y=305x-2x2 (2x squared). The price of output is $2 per unit and the price of x is $10 per unit. Then the firm should use 150 units of x to maximize profits.

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For profit maximization, We have the condition
Marginal Revenue Product (MRP)= ...

Solution Summary

Contextualize profit maximization.