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Question: General Motors (GM) produces light trucks in several Michigan factories, where its annual fixed costs are $180 million, and its marginal cost per truck is approximately $20,000. Regional demand for the trucks is given by: P = 30,000 - 0.1Q, where P denotes price in dollars and Q denotes annual sales of trucks.
a. Find GM's profit-maximizing output level and price. Find the annual profit generated by light trucks.
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