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1) Multi-Screen TV, Inc., is a Cleveland i-based importer and distributor of large screen HDTVs for residential and commercial customers. Revenue and cost relations are as follows:
TR = $1000Q - .1Q2
TC = $43,500 +100Q + 0.4Q2
Calculate output, marginal revenue, marginal cost, average cost, price, and profit at the average total cost-minimizing activity level. (Hint - MC passes through the minimum point on the ATC curve). Calculate these values at the profit-maximizing activity level. Compare and discuss answers.
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