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Question: a firm has fixed costs of 10 and its marginal...

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A firm has fixed costs of 10 and its marginal revenue and marginal cost functions are given in terms of its level of production, q, by MR =11- 2q and MC = q 2 - 4q + 3 respectively.

Find an expression, in terms of q, for the firm’s profit and determine the value of q which maximizes it.

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