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Consider the total cost and the total revenue given in the table below:
Quantity
0
1
2
3
4
5
6
7
Total cost (in €)
8
9
10
11
13
19
27
37
Total revenue (in €)
16
24
32
40
48
56
a) Calculate profit for each quantity. How much should the firm produce to maximize profit?
b) Calculate marginal revenue and marginal cost for each quantity.
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