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Suppose a firm's total cost function is TC = 80+9Q-0.75Q^2+0.03Q^3T C ( Q ) = 80...

Suppose a firm's total cost function is TC = 80+9Q-0.75Q^2+0.03Q^3T C ( Q ) = 80 + 9 Q − 0.75 Q 2 + 0.03 Q 3. Suppose the competitive market price P is $12.48/unit. To the nearest $0.01, what is the firm's profit? To solve, you must use the fact that to maximize profit, the firm will set its output to satisfy P = M R = MC ( Q ) = d T C ( Q ) d Q. To solve for Q, you must rearrange so your equation has the form 0=aQ^2+bQ+cThen use the quadratic formula: Q = − b ∓ ^(1/2)[b 2 − 4 a c]/ 2 a [Hint: you can use ∓ place in the equation.]

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