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Profit-maximizing amount, the optimal price
The second largest public utility in the nation is the sole provider of electricity in 32 counties of southern Florida. To meet monthly demand for electricity in these counties, which is represented by the inverse demand function, P = 1000 - 5 Q, the utility company has set up two electric generating facilities:
Determine the profit-maximizing amounts of electricity to produce at the two facilities, the optimal price, and the utility company's profits.
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Strategic Innovation
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