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Q. Assume that total profit and total cost from an activity are, respectively given by following equations: B(Q)=150+28Q-5Q² and C(Q)=100+8Q. (Note: MB (Q)=28-10Q and MC (Q) =8)
a. Write down equation for net profits.
b. Illustrate what are net profits when Q =1? Q=5?
c. Write down equation for marginal net profit
d. Illustrate what are marginal net profit when Q=1? Q=5?
e. Illustrate what level of Q maximizes net profits, Illustrate what is value of marginal net profits?
f. At value of Q maximizes net profits, illustrate what is value of marginal net profits?
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