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Suppose the competitive market price is $50, and a competitive firm’s total costs = 5q2 - 10q + 150 and marginal cost = 10q - 10.
a. Solve for the profit-maximizing (or loss minimizing) quantity (q*).
b. What is the market equilibrium price?
c. Should the competitive firm produce q*? Explain why using one of the four key questions and solutions.
d. Does the competitive firm make a profit? Explain why using one of the four key questions and solutions.
e. How much profit (or loss) does the competitive firm make?
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q1. would elasticity be constant for the demand curve represented by the equation q5000-0.5p?whyq2. if the cost
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