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Suppose the manufacturer of running shoes has collected the

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Suppose the manufacturer of running shoes has collected the following quantitative information. Demand for the boys shoe is estimated to be Q = 9600 - 200P, or equivalently, P = 48 - Q/200. The shoe's direct cost is C = $60000 + .0025Q2.

a. Check that these demand and cost equations are consistent with the data presented in the Allocating Costs Revisited section.

b. Find the firm's profit maximizing price and output.

Reference no: EM13601757

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