What is the optimal output level

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Reference no: EM131053803

Consider that the market demand for a certain commodity is p = 85 - 10Q, and the costs to a single firm of producing it are C(q) = 120 + 25q.

a. What is the optimal output level? What about a socially optimal (competitive) output level?

b. Is there a problem? If so, what is a potential solution?

Reference no: EM131053803

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