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Mr Patel runs a motel in Tampa, FL. The market is highly competitive since there are many hotels in the surrounding areas and the average room rent per night is $35. There are 30 rooms are Mr Patels motel and each room can be rented for 30 nights a month. That is each month Mr Patel can rent 900 nights total. Mr Patels monthly cost curve is:
TC = $10,000 + $10 x Q
What is Mr Patels Marginal cost? What is Mr Patels profit maximizing quantity? What is his maximum profit?
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