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Your firm’s research department has estimated your total revenues to be R(Q) = 600Q – 4Q2 and your total costs to be 60 + 2Q2. (Note that MB = 600 - 8Q and MC = 4Q).
a. What level of Q maximized net benefits?
b. What is marginal benefit at this level of Q?
c. What is marginal cost at this level of Q?
d. If the firm produces at the point where net benefits are maximized, what are the expected total revenues and totals costs?
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