Assume a firm has the following total cost function and revenue functions; TC = ½ Q2 -6Q2 + 6Q + 7 and TR = 30Q – Q2 where Q is measured in tonnes and costs and revenues are measured in dollars. a. Find the level of output that maximize total revenue b. Find the level of output that maximizes profits. Calculate MR and MC at this value of Q. What do you observe?

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