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3. Suppose a monopolistically competitive firm’s demand is given by P = 4,000 – 2Q And...

3. Suppose a monopolistically competitive firm’s demand is given by P = 4,000 – 2Q And its cost function is given by TC = 5 + 40Q a. Find the profit maximizing quantity, price, and total profit level. b. If the firm is regulated to charge Price = Marginal Cost, calculate how much profit it will make.

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