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Commercial Recording, Inc. is a manufacturer and distributor of reel to reel recording decks for commercial recording studios.Revenue and cost Relations are:
TR= $3,000Q-$0.5Q^2
MR= (Delta Symbol) TR/ (Delta Symbol) Q=$3,000-$0.3Q
TC=$100,000+$100Q + $0.1Q^2
MC= (Delta Symbol)TC/(Delta Symbol)Q=$1,500 + $0.2Q
A. Calculate output, marginal cost, averagecost, price and profit at the average cost-minimizing activity level.
B.) Calculate these values at the profit-maximizing activity level.
C.) Compare and discuss your answers to parts A and B
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