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A firm faces the revenue curve, TR = 80Q – 3Q2 , and has the cost...

A firm faces the revenue curve, TR = 80Q – 3Q2 , and has the cost equation: TC = 200 + 20Q.

a. Find the value of maximum profit. © (6pts)

b. If I were to ask you to find the Lagrangian multiplier and interpret it, you wouldn’t be able to. Why not? State the 2 reasons that make it impossible for you to do it. © (6pts)

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