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Suppose you are the manager of a watchmaking firm operating in a competitive market. Your cost...

Suppose you are the manager of a watchmaking firm operating in a competitive market. Your cost of production is given by C = 100 + q2, where q is the level of output and C is total cost. (The marginal cost of production is 2q; the fixed cost is $100.)

a. If the price of watches is $70, how many watches should you produce to maximize profit?

b. What will the profit level be?

c. At what minimum price will the firm produce a positive output?

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