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Shalimar Jubal has determined that demand for her phone cases is given by Q = 250 - 4P and a cost equation given by C = 50 + .5Q.
a. Determine the optimal price and quantity for the firm. (Price should be calculated to nearest cent. Example: $5.43 should not be rounded to $5.00.)
b. Suppose that costs change to C = 40 + 2.0Q. Determine the new optimal price and quantity. Explain why the results differ from those in part a.
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