What output level should the rm produce to maximize profits

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Reference no: EM13690169

Suppose that a rm faces the demand curve of the form q = 60 - 2p.

a) Write down the total revenue curve as a function of q.

b) Assume MC = 0.2q and MR = 30 - q.

What output level should the rm produce to maximize profits?

c) Graph the demand, MC, and MR curves and the point of profit maximization.

Reference no: EM13690169

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